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New Delhi: The Union Budget 2023-24 was presented by the Finance Minister nirmala sitharaman February 1 can certainly help in unleashing the potential of the Indian economy. However, from a real estate perspective, there were no major direct announcements that could be seen as immediate booster shots. Industry Stakeholders are still calling it a balanced budget with some favorable announcements for sustainable cities, Pradhan Mantri Awas Yojana (PMAY), infrastructure, development authorities, income tax, etc.
Niranjan Hiranandani, Vice President, NAREDCO evaluated budget 2023 On 8/10. “India has weathered global and economic storms prudently. It has rightly addressed India’s economic growth by increasing capital expenditure in infrastructure to Rs 10 lakh crore, which is about 3.3% of GDP. Its There will be a multiplier effect on real estate asset classes. Like residential, commercial, industrial and logistics sector,” feels Hiranandani.
Anuj Puri said, the increased allocation for PMAY is definitely a boost for affordable housing, which was coming down due to increase in input costs and buyers in this segment, mostly from the unorganized sector, are still reeling from the impact of the pandemic. Struggling, Chairman, Anarock Group.
Hiranandani said digital adoption and green economy measures would augur well for sustainable development and help in achieving a low carbon economy.
Gaurav Karnik of Ernst & Young India emphasized that the taxability of return of capital in the case of real estate investment trusts (REITs) would call for a re-look at the distribution model of REITs.
The increase in tax exemption limit to Rs 7 lakh and reduction in tax structure across all slabs will certainly help pump in more liquidity into the markets. Nahar Group Vice Chairperson Manju Yagnik said that people will now have more disposable income to save and invest in homes, which will further drive the growth potential of the sector.
Pritam Chivukula, treasurer, CREDAI-MCHI, however, said it could have been a better budget for the real estate sector which is the second largest employment generator after agriculture. Overall, a progressive budget with the government’s emphasis on job creation, building a strong infrastructure and reviving the economy.
Sandeep Runwal, President, NAREDCO Maharashtra said, the Finance Minister announced a 66% increase in funding for the PMAY scheme. This allocated amount is expected to address more than 55% of the projected deficit for projects under the scheme, providing a major impetus in providing housing to those in need and bridging the gap between those without access to proper housing. does. This improved subsidy will ensure that urban and rural houses are constructed within the allotted time frame and as per the prescribed standards.
“The rationalization of tax slabs under the new tax regime is welcome. Leaving the old tax slabs untouched clearly reinforces the government’s statement of making the new tax structure the default structure. Ease of doing business along with enhancing digitization Steps are being taken for this. Very welcome,” said Rohit Gera, Managing Director, Gera Developments.
Anshuman Magazine, President & CEO – India, South-East Asia, Central said, “This year’s budget has been good on many fronts, including focus on infrastructure development, meeting green targets, tax cuts to the middle class, providing relief and promoting the MSME sector.” East and Africa, CBRE.
Srinivasa Rao, CEO, Vestian, said that despite the absence of a strong real estate sector perspective, the budget has attempted to touch upon several key issues affecting the economy and we believe that these programs will enhance the country’s position on the global platform. Will strengthen the image.
Deloitte India Executive Director Amit Kumar said, “2.15 crore houses have been constructed under PMAY-Gramin so far. With the increased allocation, the government will have more resources to accelerate the construction of rural housing, The pace of progress will likely increase towards meeting the target of improving pucca houses and infrastructure in rural areas by 2024.
In addition, construction activities under PMAY-Gramin not only provide houses to eligible beneficiaries but also contribute significantly to employment generation promoting poverty alleviation. Construction of a house under PMAY-Gramin generates direct employment of about 314 person-days, which includes 81 skilled, 71 semi-skilled and 164 unskilled person-days. There is also indirect job creation in the production of buildings and their transportation, boosting the rural economy.”
“Budget 2023 is a gift for affordable housing, with the strategic decision to increase the outlay for PMAY by 66%. This decision provides the much needed impetus to the vision of “Housing for All”. Further, 33% With the increase in infrastructure outlay, the government is facilitating economic growth through job creation and investment which has a direct and indirect impact on the real estate sector. Cities like Bhubaneswar (12%), Coimbatore (12%) in 2022 27%), Jaipur (5%), and Nagpur (66%), and this initiative will further enhance the liveability index and appeal of these cities. Overall, the Union Budget Definitely positive and growth oriented for the real-estate sector,” said Sudhir Pai, CEO, Magicbricks.
Hemal Mehta, partner, Deloitte India, said, “The proposed amendment for REITs/InvITs pertains to distribution to unitholders by way of “repayment of loan”, which is now chargeable to taxation as other income (of cost of acquisition). net) Unit) which was not captured earlier. This was acting as an incentive for the sponsors. A surcharge of 40% and would be levied on any foreign investor receiving the said distribution.
Krishnan Sitharaman, Senior Director and Deputy Chief Ratings Officer, CRISIL Ratings, said, “With the announcement of amendments to the Banking Regulation Act, Banking Companies Act and the Reserve Bank of India, there is a clear focus on enhancing bank governance and investor protection. India Act, which should structurally strengthen the sector and strengthen the confidence of the stakeholders.
Also a move towards democratization of information, the government is planning to set up a National Financial Information Registry to serve as a central repository of financial and ancillary information. This should support quicker and more streamlined loan appraisal and monitoring for lenders.”
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