Real estate developers have welcomed the government’s decision to hike the outlay for the Pradhan Mantri Awas Yojana to Rs 79,000 crore, saying it will boost supply-demand of affordable housing.
Reacting to the FM Nirmala Sitharaman’s budget, Ankit Kansal, Founder & MD- 360 Realtors, stated that the government of India has shown its “commitment to systematically dismantling structural bottlenecks, fueling infrastructure growth, and working on the fundamentals”.
“The INR 10,000 Crore urban infrastructure fund is a welcome step, as this will help Tier 2 and 3 cities and bridge their gap with larger metros in India. This will also fuel demand for commercial and residential real estate in such parts of the country,” he said.
Harpal Singh Chawla, Director- Spaze Group, stated that the 66 per cent rise in the PMAY funds to 79,000 crores bodes well for the affordable housing sector and will lead to a resurgence in its absorption rates.
Amit Jain, Director- Mahagun Group, said the government has also pivoted the growth of infrastructural development by enlarging the funds allocated in the capital expenditure Budget.
“The government is adopting a multi-pronged strategy to bolster infrastructural seamlessness, connectivity, job opportunities, and socio-economic reforms to bring holistic development metrics and parameters across the country, through public-private partnerships,” Jain said.
Calling Union Budget 2023-24 as “progressive and forthcoming”, Sumit Agarwal, Director, Sales & Leasing- Bhutani Grandthum, stated that introduction of sound and accountable policies, expansion of fund allocations, socio-economic growth catalysts and measures to accentuate “Ease of Doing Business” was the central focus of the Budget 2023, referred to as the first Amrit-Kaal Budget.
“The real estate sector will pay dividends from many of the key announcements made by the Finance Minister. Boosting the paradigms of infrastructural connectivity, the capital expenditure funds have been prominently increased to Rs. 10 Lakh crore to elevate the urban planning substratum and ratchet up holistic development in multiple corridors. This will boost the commercial real estate sector, which considerably depends on infrastructural robustness for consumer attraction.
Harvinder Sikka, MD- Sikka Group, also welcomed announcement of expanding the PM Awas Yojana Fund by 66% to Rs 79,000 crores benefits both developers and buyers.
“The country’s per capita income has steadily increased, significantly benefiting the real estate sector. The declaration of income tax exemption for incomes up to 7 lakhs would also help real estate because it will provide relief to middle-class buyers,” Sikka said.
Deepak Kapoor, Director,- Gulshan Group, stated that the increased spending on infrastructure, while on the one hand, increasing prosperity, will also boost economic prospects, which will encourage both the housing and commercial realty segments. A rebate in the income tax rates will indirectly boost the real estate sector.
Amit Modi, Director- County Group and President-CREDAI (WUP) hailed reduction of compliance burden as the biggest take away for in this years budget
“While we await the fine print, we hope that it also includes compliances related to Real Estate industry for ease of doing business,” Modi said.
Commenting on change in tax slab, Ashwinder R Singh, CEO Residential -Bhartiya Urban, states that it will improve disposable income, propelling first-time buyers in the salaried class to act on their dream of buying their first home and making it a reality.
Sanjay Sharma, Director- SKA Group, also expressed similar sentiments when he said that The announcement of income tax relaxation for the income of upto 7 lakh will also be a boon to real estate as this brings a relief to middle-class buyers.
Manoj Gaur, President CREDAI NCR and CMD Gaurs Group, said that through a slew of announcements, the Union Budget 2023 – 24 focuses on controlling fiscal deficit, reducing compliance burden as more than 3,400 legal provisions have been decriminalised to improve ease of doing business.
“CREDAI congratulates Hon’ble FM for presenting an inclusive and forward-looking budget,” Gaur said.