The government allocated Rs 48 k crore for universal housing in Budget 2022. The Budget has laid the foundation of stronger urban development with sheer measures to revamp the housing challenge in the urban areas, said realty sector.
Mohit Malhotra, MD and CEO, Godrej Properties Ltd.
The Finance Minister’s budget proposal 2022-23 has been optimistic to enhance the nation’s growth and revive the overall economy. The ambitious commitment to allocate Rs 48,000 crore towards ‘Housing for All’ has reinforced the Government’s determination to boost affordable housing in the country. Moreover, the Budget has laid the foundation of stronger urban development with sheer measures to revamp the housing challenge in the urban areas. Additionally, this will push for larger vertical development modules that utilize green energy generated by solar panels to reduce the overall carbon footprint. Electric mobility is the future, and the urban development program will encourage developers to move towards more functional amenities, keeping in mind the electric mobility needs of the new-age home buyers.
Arvind Subramanian, MD & CEO, Mahindra Lifespace Developers
With its focus on affordable housing, infrastructure projects, inclusive development and productivity enhancement, Union Budget 2022 is both balanced and growth-oriented. The allocation of Rs 48,000 crore under PMAY urban and rural schemes and of Rs 60,000 crore to cover 3.8 crore households for tap water will boost affordable housing in India. However, an extension on tax exemptions to first-time buyers of affordable homes would have helped further incentivise purchase decisions and accelerate growth in the segment. Connectivity is a key growth driver of real estate, and the industry is expected to benefit from the renewed focus on road construction.
Gautam Thacker, President, NAREDCO - Neral-Karjat Unit
The Union Budget for 2022 looks promising and balanced. It has more or less provided each sector with some benefits which will help the businesses to overcome certain uncertainty. Announcements such as 48,000 crores for PMAY, 80 lakh homes under PMAY will help boost the affordable housing market. Besides this, the government (Central and State) has designed various schemes, such as Pradhan Mantri Awas Yojana (PMAY) with the aim to build one crore homes in urban and rural India by 2022 which will further boost the boost affordable housing and achieve the vision of Housing for all by 2022 – 2023.
Harresh Mehta, CMD, Rohan Lifescapes.
Union Budget 2022 has further given impetus to the growth of the housing sector in India. Continued emphasis on urban planning by adopting modern laws will boost the development of the segment in the near future. Also, the government planning to launch ‘Ease of doing business 2.0’ will add different flavors with more dynamic aspects to make India a lucrative destination for investment. Overall, the budget proves to be a helping hand for more or less all the sectors keeping the current disruption in mind.
Harpreet Singh Hora, Group Director, Realistic Realtors
The government’s allotment of 48,000 crore to build around 80 lakh affordable homes is a positive initiative for real estate. The expansion of highways by 25,000 kms will catalyze the development of new realty clusters and allied industries. The boost to the infrastructure at the grassroots levels will fuel the demand for the sector in Tier 2 & 3 cities. Furthermore, the establishment of the high-level committee for Urban planning will greatly enhance the ease of doing business and result in raising the standards of living in Indian cities. The budget will sustain the momentum gained in past few months for real estate and gradually increase it during the FY 2022-23.
Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited
The increased Capex allocation is a big move for the coming fiscal year. Everything from providing infra status to data centers, the introduction of ‘digital rupee’, green bonds and purity bonds unveil a further looking growth-oriented budget. This will facilitate credit availability for digital infrastructure and clean energy storage as well. Schemes like one nation, one registration for land reforms will be ground-breaking for the sector, the impact of which is yet to be seen.One of the key agendas of Budget 2022 was the idea for systematic urban development by consorting between the central and state governments. It is a pertinent step to address the housing issue in the urban areas with state-center coordination.
Pradeep Misra, CMD, Rudrabhishek Enterprises Limited
The special focus on PM Gati Shakti scheme will have a multiplier effect on the economy. The government’s target of expanding the road network by 25,000 kms through an investment of Rs 20000 crore in 2022-23 will strengthen the infrastructure at the grassroots levels. The announcement of Parvatmala scheme should fuel the development of eco-friendly tourism in the hilly, remote and ecologically fragile areas. The investment of Rs 60,000 crore for tap water connections scheme will be the boon for millions of Indians, especially among the economically weaker section. Additionally, the 400 Vande-Bharat trains will boost the land-transport. The crucial thing will be rolling out of projects on quicker pace and ensuring that the public private partnership programs are designed in a way that supports the companies involved in infrastructure sector, specifically the MSMEs.
S Ravi, former chairman of BSE, Founder & Managing Partner of Ravi Rajan &Co.
The Union Budget is a growth-oriented Budget focusing on rural infrastructure, cooperative societies and improving connectivity through PM Gati Yojana. Gati Sakthi would really catalyse the growth. Reduction of MAT and surcharge for cooperatives is a welcome step. Laying down of optic fiber in villages and rural india is a step to unifying urban with rural india. Agriculture tools would be cheaper which is a very good step for farmers. This Budget also clarifies about government’s stand on crypto currency by stating that digital currency would be part of the economy from the year 22 -23. Taxing of crypto transactions including gifting to the extent of 30 percent of income is a very significant step.This step actually gives a way forward for the crypto industry. The budget focuses on agro tech digitalisation and climate action.
Shishir Baijal, Chairman and Managing Director, Knight Frank India
The Finance Ministry has presented a growth-oriented budget with focus on infrastructure and development. Creation of unified logistics platform and developments of 100 new cargo terminals in the next three years are significant steps in improving the supply chain eco system in the country. Many measures have been around digital adoption and ease of doing business initiatives which will improve business efficiency and go a long way in driving economic growth. The Government has reiterated its commitment towards Housing for All by allocating Rs 48000 crore towards this scheme, around the same as last year. Interventions to improve credit to the pandemic afflicted MSME sector including hospitality industry is also a step in the right direction. Infrastructure status given to Data Centers will provide a huge boost to the fast evolving digital environment of the country. The FM has said that the SEZ Act will be replaced with a new law and we will be waiting for further details given the significant impact of this on the commercial real estate sector.
Sripad Nandiraj, Founder, Hocomoco
The Union Budget 2022-2023 presented by FM Sitharaman for the affordable housing sector will undoubtedly encourage the sector's next stage of growth. The challenge, however, according to the Economic Survey, is to significantly increase infrastructure spending. India spent $1.1 trillion on infrastructure during fiscal years 2008 and 2017. It will now need to spend $1.4 trillion to reach a GDP of $5 trillion by 2024-25, according to its recent report. Additionally, the Gati Shakti plan, which aims to bring 16 ministries together to work on infrastructure and connectivity projects, is also a beneficial move that will aid the affordable housing plan. From Hocomoco's standpoint as a construction aggregator company, the budget is extremely encouraging.
Shubham Jain, Chief Business Officer, Real Estate and Infrastructure, CredAvenue.
One of the key goals outlined by the government through this budget is to rely on the virtuous cycle starting from private investment, with public capital investment acting as an enabler for private investment. This is expected to act as a force multiplier where Capex growth for the next phase would be funded by both public and private capital. Probably the most important theme of the budget has been the big public investment for modern infrastructure. The PM Gati Shakti program would largely drive this. Under this program, key segments such as Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure are expected to get focussed attention to drive forward the infrastructure agenda. With the Government planning to use innovative financing models to fund these projects, we expect an adequate supply of required long-term capital into the infrastructure story.
Sohail Mirchandani COO & Co-Founder, Ekostay, a homestay venture
Young India has become synonymous with the term - Startup. The dream of having one startup per district is almost coming true, but one of the biggest hurdles startups face is being bootstrapped. And so the difficulties that come along , affecting the sustainability of these startups. The extension of ECLGS will only do good to young India in many ways. The ECLGS expansion by Rs 50,000 crores to cover an aggregate of Rs 5 lakh crores to aid MSME's financial needs will definitely help the hospitality sector, that's been looking for some relaxation or aid since COVID struck. This along with the other key points of the Budget 2022 shall definitely boost the spirits of young India and startups.
Varun Gupta, Director, Ashiana Housing
Union Budget 2022-23 is pragmatic and progressive – especially with its increased focus on tier 2 and tier 3 cities for urban development. The economy is back on track and has put behind the impact of Covid-19 pandemic . The increased allocation to infrastructure and capital expenditure in this budget will catalyse urban development and economic growth. Also a high-level panel to be set up for urban planning is a great idea towards better quality development of our cities. The Budget has emphasized the need to nurture mega-cities while also focusing on Tier 2 and Tier 3 cities. The support given to infrastructure will also create job opportunities for Tier-II and Tier III cities, leading to growth in population and higher demand for residential as well as commercial projects.
Punit Agarwal, MD & CEO, Nirvana Realty
The Union Budget continues with the trend of announcing major reforms. This year’s budget mainly focused on infrastructure, MSME & Rural development which is going to bolster the overall consumption of goods & services by the lower & middle class resulting in the increase in nation’s GDP & will make India grow at a faster pace, overcoming the roadblocks of the pandemic.
Though the Budget was short, it may have more impact in the longer run. The private housing sector did not have any direct reforms made or benefits but the focus on upgradation of technology is going to play a pivotal and catalysing role in surging the demand for the real-estate sector. I see a consistent growth for the realty sector in the next five years.
Harpreet Singh Hora, Group Director, Realistic Realtors
The government’s allotment of 48,000 crore to build around 80 lakh affordable homes is a positive initiative for real estate. The expansion of highways by 25,000 kms will catalyze the development of new realty clusters and allied industries. The boost to the infrastructure at the grassroots levels will fuel the demand for the sector in Tier 2 & 3 cities. Furthermore, the establishment of the high-level committee for Urban planning will greatly enhance the ease of doing business and result in raising the standards of living in Indian cities. The budget will sustain the momentum gained in past few months for real estate and gradually increase it during the FY 2022-23.
