The Union Budget 2023-24 includes a swathe of favourable policies and reforms that promise a considerable boost to urban infrastructure and affordable housing. For example, the outlay of PM Awas Yojana Fund has been increased by 66% to Rs. 79,000 crore in this budget as a significant step towards creation of housing for all.
Budget 2023 an insider
The Finance Minister has also announced 33% hike in capital expenditure to Rs. 10 lakh crore for infrastructure development. Moreover, an Urban Infrastructure Development Fund (UIDF) is also planned to be set up to create urban infrastructure in Tier 2 and Tier 3 cities. The real estate industry leaders in the meanwhile have cheered the budget for its unwavering focus on stirring the demand in both residential and commercial segments.
Mr. Manoj Gaur, President CREDAI NCR and CMD Gaurs Group said, “An increased capital outlay for a third year in a row to INR 10 lakh crore amounting to 3.3% of the GDP, a hike of 66% to over 79,000 crore for PM Awas Yojana and the 9,000-crore Credit Guarantee Scheme for MSMEs will have a positive multiplier effect on economic growth and help realize the PM’s vision for ‘Housing for All’.”
“The Union Budget 2023 has rightly emphasised on boosting the healthy consumer demand in the realty sector apart from enhancing the ease of doing business. The honourable finance minister has also showcased her keen inclination towards urban infrastructure development in tier-II-III cities with the announcement of the fund of Rs. 10000 crore per annum for this purpose. Such an encouraging move will further drive real estate growth all across the country,” added Mr. Ashish Bhutani, CEO, Bhutani Infrastructure.
“Budget 2023 will help drive growth in the Indian realty sector with its emphasis on upgrading infrastructure and boosting demand in the residential segment. The demand for luxury properties has been already growing rapidly and we expect the market to become much more favourable for the HNIs to invest on the back of the increased thrust of the government on boosting the urban infrastructure,” said Mr. Rizwan Sajan, Founder and Chairman, Danube Group.
Mr. Ajay Chaudhary, CMD, Ace Group opined, “We welcome the Union Budget 2023 for its significant announcements enabling the real estate sector to march on the growth trajectory. The announcement like increased income tax rebate limit from Rs. 5 lakh to Rs. 7 lakh in new tax regime will sustain demand creation in both affordable and luxury housing segments. Apart from giving more disposable income in the hands of the consumers, the concerted focus of this budget on encouraging reforms in urban planning will further boost India’s already thriving real estate sector.”
Mr. Sanjay Gupta, CMD, APL Apollo Tubes said, “Considered as the backbone of the country’s infrastructure growth, the steel industry is here to get a considerable boost with the inclusion of infrastructure development into the seven priorities of Budget 2023. We equally welcome the respected Finance Minister’s comprehensive focus on proposing 100 critical transport infrastructures for last and first-mile connectivity with an investment of Rs 75000 crore that promises the demand for steel to stay robust in the market. The annual allocation of Rs. 10000 crore for urban infrastructure development will also lead to demand creation for steel.”
Riding high on the encouraging policies announced in Budget 2023-24, the demand in real estate sector is expected to grow. Above all the rationalisation of income tax would definitely encourage some of the fence-sitters to enter the market and purchase their choicest properties.