Worst hit by the pandemic, the real estate sector is witnessing several immediate demand-side pushbacks, but some important opportunities are missing. However, the continued thrust on infrastructure spending and relaxation for affordable housing has given the sector hope for a positive turnaround.

Ramani Shastri, President, and MD, Sterling Developers Pvt Ltd says, “While affordable housing remains a priority area for the government with some additional reforms, the government can further boost the overall real estate that boosts the Indian economy. and supports over 250 allied industries. There is a huge opportunity in real estate which will enable rapid economic recovery.”

Real estate experts and consultants are of the view that despite various lapses, Budget 2022 has provided several policy incentives that are expected to benefit the real estate sector.

According to JLL, policy measures such as land records digitization, allocation of Rs 48,000 crore under PM Awas schemes, construction of 8 million houses by FY 2023, and replacement of SEZ laws are some of the reasons that serve as a catalyst for the sector. Estimated to work. In addition, infrastructure positioning offered to data centers, digital connectivity for 5G spectrum allocation, all these factors further improve the market for the real estate sector.

Radha Dhir, CEO & Country Head, India, JLL, says, “The land records digitization program will create a unified land information management system across the country that will facilitate transparent and litigation-free land transfers. The move is expected to give a big boost to the warehousing and logistics industry. PM Awas Yojana is expected to achieve the objective of ‘Housing for All’ with 8 million beneficiaries. This will lead to higher growth of affordable housing. Expenditure on various housing projects is expected to generate demand for real estate-related industries.”

The granting of infrastructure status to data centers is expected to offer easy access to affordable housing institutional funds over the long term, which will improve investments in the sector. The data center capacity is projected to increase from 499 MW in H1 2021 to 1008 MW in 2023. The growing optic fiber network and allocation of the 5G spectrum will give a high digital push to real estate demand.

Housing.com, Makaan.com, and Prop tiger. Dhruv Aggarwal, Group CEO, Dhruv Agarwal said, “In the Budget aspires to boost private consumption and create jobs to improve the economy in the backdrop of the third wave of the coronavirus pandemic, a slew of measures announced by FM Nirmala Sitharaman Has been. It will go a long way in achieving the twin goals. The provision of Rs 48000 crore to complete 80 lakh houses under the Pradhan Mantri Awas Yojana will help the government to achieve its target of housing for all. The government’s proposal to cut the approval time related to land and construction will lead to ease of doing business. The real estate sector will also benefit from announcements related to industrial and logistics and data centers, allowing them to aggressively diversify these two upcoming asset classes in the overall real estate sector.

Agarwal said, “The industry was expecting some changes in the tax slabs, a move that would result in more savings for the people, which would result in a boost to consumption, especially in the real estate sector. Any direct support for the housing sector would be affected. The budget has also been largely silent.”

Amit Modi, Director ABA Corp, President-Elect, CREDAI Western UP, said, “In this year’s budget, the sector was expected to make some concrete announcements like industry status and GST input tax credit for developers, but these things did not happen. Also, we welcome Rs 48,000 crore as PM Awas Yojana and the identification of about 80 lakh houses or allocation of an affordable housing scheme in 2022-23. We also look forward to the Government’s recommendations of a High-Level Committee for Urban Planners and Economists to be set up for Urban Capacity Building, Plan Implementation, and Governance.

Modi said, “After the Kovid-19 pandemic, it was important to allocate resources to create jobs and strengthen employment generating industries, which the government did, but the real estate sector is one of the largest employers in the country. was expecting to be. More fiscal and policy support will be a major contributor not only to recovery from the pandemic-induced slowdown but also to the government’s 6 million job creation target and the scale of a $5 trillion economy.

Real estate experts say that despite high expectations, the Budget for the Indian real estate sector was a bit disappointing.

Ankit Kansal, Founder and MD, 360 Realtors, said, “There are several sector-specific policies for industries like chemicals and fertilizers, gems and stones, steel, defense, animation, electronic equipment, etc. Meanwhile, nothing beats real estate. A concrete announcement has been made regarding this. However, some positive results have come to the fore.”

He further added, “Firstly, the commitment of the Government of India to further develop the urban infrastructure in a robust yet sustainable fashion is a welcome step. Secondly, the Government of India has rationalized customs duties for several steel products, including Also includes steel scarps for secondary steel producers. Lowering steel prices can help in optimizing input costs. Another icing on the cake has been the Indian economic comeback. During the budget session, Hon’ble Finance Minister January 2022 140,000 crores, which is the highest since the implementation of the GST regime. The increase in GST collections resonates with a healthy economic outlook, which will drive demand for real estate. Meanwhile, Government has extended one more year for availing tax benefits for newly incorporated manufacturing units. This may help in increasing the demand for industrial land, Godowns, and commercial properties.

Amarjeet Bakshi, CMD, Central Park said, “We had expected a budget that was people and business-friendly; The current budget has made it clear that the main focus is on economic growth as the Economic Survey has projected the GDP growth rate to be 8-8.5 percent in the next fiscal. Emphasis on improving transport infrastructure, including highways, will go a long way in creating sustainable pockets of real estate development. Though there was no announcement related to this sector, we expect the job creation and the announcement of Ease of Doing Business 2.0 to drive demand.

Bhumika Group, MD, Uddhav Poddar said, “This year’s budget focus was more on promoting overall infrastructure, urban planning, etc. not only in metros but also in Tier II-III cities. The establishment of a high-level committee for urban planners and economists to make recommendations on urban capacity building, plan implementation and governance is a major leap forward in introducing modern urban planning structures. Overall, the Union Budget 2022-23 had mixed announcements for the real estate sector; A lot was expected in the terms of single window clearance, industry conditions, and tax incentives, which did not come. ,

Most developers preferred the budget to focus on affordable housing.

Vikas Garg, DMD, MRG World said, “We are glad that the focus of the government is on providing affordable housing; The announcement of coming up with 80 lakh houses under PMAY for urban and rural areas demands a concerted effort of the government and developers. The focus on improving transportation will certainly help in developing affordable homes, which is a prerequisite for buyers. The government has also said that it will work with the financial sector to reduce the cost of middlemen, which will further streamline the process and control costs.

Sandeep Sawhney, Chairman, iPhone World, said, “Gati Shakti masterplan for expressways, 100 new cargo terminals for multi-nodal logistics and development of urban metro systems will lead to a massive addition of new warehousing and logistics facilities across the country, both residential and commercial. Increasing demand in both sectors will definitely create more job opportunities. In addition, the government is also planning to launch ‘Ease of Doing Business 2.0’ which should include more dynamic aspects and give India more investment. A high-level panel for urban planning and modern building bye-laws will be set up which will be a booster for the overall sentiments for the real estate sector.

Manpreet Singh Chadha, Chairman, Wave Group said, “The Union Budget for the financial year 2022-23 is definitely a development-oriented budget. The allocation of Rs 7.5 lakh crore for capital expenditure will act as a major catalyst to achieve GDP growth of over 9%. With a greater focus on modernization and up-gradation of infrastructure, urban capacity building, making data centers a part of the infrastructure, and strengthening public transport systems, there will be employment generation which will drive new demand in the real estate sector.”

Leave a Reply

Your email address will not be published. Required fields are marked *