Real estate market growth might be sparked by the Union Budget 2022-23. Budget statements emphasize affordable housing and infrastructure development, which appear enabling and forward-looking. Property sales in India have slowed down due to Coronavirus-induced problems, fewer site visits, and project delays. Various measures announced by the Finance Minister should have a positive impact on the industry. As a blueprint for the future, this budget has a commendable combination of modernity and inclusiveness.
Real estate analysts declared the Union Budget 2022-23 to be a growth-inducing budget, emphasizing how important it is to Indian business. It will significantly assist our younger generations, women, and farmers, as well as increase productivity and accelerate economic growth and development, all of which portends well for the real estate industry. The initiatives in Budget 2022-23 have boosted the affordable housing industry and decreased anti-dumping duties on steel.
Real estate sector upsides from the budget:
Let us look more closely at the critical points highlighted to alleviate real estate developers’ fears and their consequences for the real estate market:
1) Economic Pushes:
A 9.2 percent GDP growth is forecast for the fiscal year 2022-23 by the Finance Minister. As a result of a planned capital investment of Rs 7.5 lakh crore, these indications might increase market liquidity, affecting the real estate industry directly.
In addition to the Gati Shakti Master Plan for 2022-23, the second primary aim was to raise Rs 20,000 crores for the sector. The Scheme will demonstrate its ability to contribute to long-term growth and development. It will be built on seven engine types: trains, roads, airports, ports, mass transit, and waterways.
2) A persistent Demand For Affordable Housing:
Since the real estate sector, which is in the midst of a post-pandemic recovery phase, is in constant need of affordable housing and overall demand generation, it has issued a number of requests to get back on track. The real estate industry anticipated relaxations that encourage affordable housing and rental housing with the presentation of the Budget 2022-23. There is a promise of Rs 48,000 crore for affordable housing in the Union Budget 2022-23. The grant will be used to extend the availability of low-cost housing under the Pradhan Mantri Awas Yojana. In the coming year, the plan will assist around 80 lakh families.
3) Focus On Urban Planning:
In the Union Budget 2022-23, Mega-Cities were emphasized as well as Tier 2 and Tier 3 cities. Future economic growth will be driven by these cities. By the year 25 years from now, nearly half of the world’s population will live in cities. Orderly urban growth is essential to preparing for this. In order to help the states develop urban capacity, the government collaborates with them.
Investing in sustainable and planned development may benefit the housing industry. Five centers for excellence in urban planning have also been proposed, which will provide the industry with a channel to attract qualified employees. To bring about a paradigm shift in Urban Planning, the Union Government has announced the formation of a high-powered committee of urban planners, economists, and institutions to provide policy recommendations, implementation strategies, and capacity-building related to urban infrastructure development.
4) Budget Effects On Cooperative Societies:
As part of the Union Budget, the Alternative Minimum Tax was suggested to be lowered from 18.5 percent to 15 percent in order to ease the burden on cooperative groups. There has also been a reduction in the surcharge for incomes between Rs 1 crore and Rs 10 crore to 7%.
5) Infrastructure Projects:
There have been plans to expand highways across the country by 25,000 km, allocate Rs 60,000 crore to the Nal Se Jal scheme, and start five river link projects across many states, all of which will contribute to the overall growth of the country. A key benefit will be the acceleration of infrastructure development in the country and the benefit to the real estate sector as well.
6) Digitalization Of Records:
In addition to digitizing land records, one of the key objectives is to improve access to these records. In order to maximize the use of land resources, it is imperative that they be utilized efficiently. Information technology will be urged as a means of managing records in the states. As part of the Union Budget, government is urged to establish a Unique Land Parcel Identification Number so that deeds can be recorded anywhere and digital land records can be maintained. A translation of land records from regional languages is also being undertaken. It was done to encourage one nation, one vote registration from anywhere in the country. This Union Budget move will be a game-changer for India’s real estate market.
7) The Steel Budget And Its Impact On Real Estate:
Real estate is not a stand-alone industry. In addition to steel, iron, and cement, it collaborates with a variety of other industries. In the Union Budget 2022-23 announcements, the Finance Minister abolished the Countervailing Duty and Antidumping Duty on stainless steel, coated steel, alloy steel bars, and high-speed steel in the public interest, due to the current high metal prices, thereby lowering imports from China and supporting local manufacturing. It will directly affect businesses involved in construction and steel manufacturing, which rely heavily on steel in the construction of dwellings.
8) Parvatmala: The National Ropeways Development Programme:
There is more to real estate than just a single industry. Additionally, it collaborates with other industries besides steel, iron, and cement. As a result of the current high metal prices, the Finance Minister abolished Countervailing and Antidumping duties on stainless steel, coated steel, alloy steel bars, and high-speed steel in the Union Budget 2022-23 announcements. Consequently, imports from China will be reduced and local manufacturing will be supported. Steel is used heavily in the construction of residential buildings, which directly affects businesses involved in construction and steel manufacturing.
Conclusion:
Finally, the Union Budget 2022-23 proposes to improve affordable housing availability and strengthen multimodal infrastructure. Even though some demands, such as single-window clearance, industry status, and tax reductions, are unmet, it is a budget that enables the future.