Like any other business, the real estate sector is also looking forward to many path-breaking announcements in Budget 2022. Every year, the announcement of the Union Budget gives rise to a lot of discussions on media.
Finance Minister (FM) Nirmala Sitharaman presented the Union Budget 2022-23 to Parliament on Tuesday 1st, Feb 2022, at 11:00 a.m. It is the 10th Budget under Narendra Modi Ministry and the 4th Budget presented by FM. Also, it is the second Digital Budget that has been declared after the Pandemic. The Union Budget 2022-23 focuses heavily on digitization, urban development, and sustainability
This year’s budget was based on a vision of the next 25 years and it has focused a lot on infrastructural development. It has filled the real estate sector with optimism as the Government has tried to uplift the economy by planning on bringing a paradigm shift towards a usual business approach.
Here are few things that the real estate sector can look out for in Budget 2022-23
Rs 48,000 crore is allocated to the Pradhan Mantri Awas Yojna (PMAY). Placing focus on bringing transparency in the realty sector as well as affordable housing for everyone will play a crucial role in providing a much-needed boost to this industry. Also, it is the main highlight in the budget for the sector.
This allocation will help create opportunities for jobs in all the related sectors. Connectivity has always helped real estate. As road construction gets augmented with the construction of national highways, the industry is likely to benefit.
After a challenging period induced by the pandemic, the real estate sector was hoping for more fiscal and policy support. This will now contribute significantly to the creation of 60 Lakh jobs by the government and the big target of $5 trillion.
This time, urban planning has taken the centre stage too. A high-level committee for urban planners and institutes will be framing policies for development. This will provide an impetus to the real estate sector by helping transform Tier 2 and 3 cities.
Mass transit systems will bridge the gap between the big cities and the small ones. It means that we can expect to see tier 2 and 3 cities becoming important economic growth centres.
Activities in real estate will likely propel the demand for the warehousing and logistics sector too. Establishing a strong logistics network in the country will provide an impetus to the development of infrastructure in the country.
It will positively affect the development of the housing sector in the country. The Emergency Credit Line Guarantee Scheme (ECLGS) extension up to March 2023 will go a long way in supporting the Ministry of Micro, Small, and Medium Enterprises (MSME). Through Ease of Doing Business 2.0, digitization and fintech innovation are encouraged.
Budget 2022 has commendably increased the expenditure to boost demand and investment. Direct real estate measures were focused on providing infrastructure status to Data Centres. Also, there was a profound focus on urban capacity building, digitization of land records, and proposed Special Economic Zone (SEZ) law.
Thus, boosting employment, employing tax exemption, single-window environmental clearances, better coordination between the Centre and State governments for approvals, and uniform registration of deeds will help augment the real estate sector in a significant way.
There were not many provisions for tax savings for people. But the economic growth will lead to increased income that will support retail consumption.
No matter what, it looks like the real estate sector is gearing up for some good changes in the coming months. We all are free to have an opinion, but only the long term effects can tell how effective these measures were.
What did you think of this year’s Budget? Comment down below and keep checking this space to read more informative blogs coming in the future.
