Startup News Magazine

Budget Reaction Quotes 2022 | Real Estate Industry

Ms. Kanika Gupta Shori, Founder and COO, Square Yards, said, “The Union Budget 2022 has provided a sound fillip to the affordable housing sector, with the government allocating Rs 48,000 crore towards the Pradhan Mantri Awas Yojana (PMAY). The completion of 80 lakh houses for identified eligible beneficiaries in rural and urban areas will keep the real estate sector in good stead and support the demand buoyant for affordable housing in 2022 and beyond. Further, the decision of the central government to work cohesively with state governments for land and construction approvals and uniform registration of deeds is heartening to see. It will also provide much-needed impetus to the housing demand.

With homebuyers choosing environmentally sustainable homes, the single-window clearance for environmental approvals will positively rub off on real estate developers looking to build such houses. Lastly, a reduction in corporate tax for co-operative societies from 18 per cent to 15 per cent will reduce the burden on the ancillary support industries related to the construction and real estate sector. Overall, this is a progressive, supportive budget with an increased focus on affordable housing and infrastructure development.”

Mr. Amit Goyal, the CEO, India Sotheby’s International Realty, said, “The Union Budget has laid out a long term path of growth and investment with an enhanced total expenditure at INR 39.45 trillion and yet managed to curtail Fiscal deficit to 6.4% in FY 23 (from 6.9%). The budget has allocated INR 48,000 cr to housing projects under the PM housing scheme. However, no big reforms or incentives were announced for the real estate sector. It’s a missed opportunity for the real estate sector as incentives in the form of higher deductions against home loans, changes in incongruities related to real estate transfer and others might have improved the market scenario and triggered the demand and sales process in the real estate sector. Real estate sector being a major contributor to India’s GDP needs more focus from the government.”

Mr. Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers, said, “The Union Budget 2022-23 is forward-looking and focuses on a long-term plan for the country with digitisation, urban development, and sustainability at its core. For the real estate sector, the budget placed an outlay of INR48,000 crores under the Pradhan Mantri Awas Yojana, and the construction of 80 lakh homes will facilitate affordable housing. It, yet again, showcases the government’s commitment to building affordable housing stock. However, we would have liked it if there was more push on the demand side, such as extending and expanding the credit-linked subsidy scheme.

The budget made several announcements to spur the growth of the logistics sector in the country. The government repealed about 1,490 union laws in recent years, paving the way for improving ease of doing business. The government also plans to launch ‘Ease of Doing Business 2.0.’ It should include more dynamic aspects and make India a more investment-friendly destination.

The budget announced a few laudable incentives for startups. The time extension provided to claim tax benefits will give a breather for startups and encourage more startups in India. We look forward to announcing the replacement of the Special Economic Zone Act with new legislation. It has the potential to make export-led parks attractive for investments. The unique benefits will also trickle down to technology companies who export services and have a positive bearing on commercial office real estate.”

Mr. Saransh Trehan, MD, Trehan Group, said, “Finance Minister Nirmala Sitharaman’s historic budget is an optimal blend of optimism and realism which will take the country to a higher growth trajectory. May it is agriculture, infrastructure or any other sector, the budget has laid down a clear roadmap for New India and a prosperous Bharat.”

Mr. Suren Goyal, Partner, RPS Group, said, “Finance Minister Nirmala Sitharaman deserves congratulations for pulling all the right strings in her budget. The emphasis on the infrastructure sector will boost growth in the medium to long term and help the country maintain its position as the fastest-growing major economy in the world. Revamping the SEZ Act will also assist in the economy’s growth.”

Mr. R K Arora, Chairman, Supertech Ltd, said, “Government has treaded a line of fine balance to lead the economy to high GDP growth rate by investing in the infrastructure sector, yet keeping the fiscal deficit within manageable limits. In the backdrop of ambitious ‘housing for all’, PMAY has been given due importance, however largely through government’s flagship programmes rather than the incentives real estate development companies were hoping for.”

Mr. Ashish Bhutani, Chief Executive Officer at Bhutani Group, said, “Budget 2022-23 is a futuristic budget with its focus on infrastructure, warehousing, logistics and urban planned development besides improving connectivity through Gati-Shakti masterplan for expressways. Further, we welcome the honourable Finance Minister’s announcement of the allocation of Rs 48000 crore for housing projects under the PM Housing Scheme. In a nutshell, all these initiatives will improve demand in the real estate sector in the long run while encouraging the thrust on tier-2 and three cities where revamped urban planning and design has been envisaged for capacity building.”

Mr. Ajay Chaudhary, Chairman and Managing Director, Ace Group, said, “The budget presented by the honourable finance minister enframes a much promising future for the real estate industry with the much introspected PM Housing Scheme which accrues a huge allocation of Rs 48000 crore in FY-23 for housing projects apart from single-window green clearances. This move will help the real estate sector streamline the construction of affordable homes.”

Mr. Rizwan Sajan, Founder and Chairman, Danube Group, said, “Budget 2022-23 has the provisions for the modernisation and up-gradation of the country’s infrastructure that will fuel more demand in the real estate sector which is expected to reach US$ 1 trillion in market size by 2030.”

Mr. Sanjay Gupta, CMD, APL Apollo, said, “The boost in the infrastructure allocation presented by the honourable finance minister in the budget shall create a formidable positive impact on the industry creating more demand than before as the capital expenditure growth announced by the government shall be beneficial for the steel sector.”

Mr. Vikas Bhasin, MD, SAYA Homes, said, “The Union Budget 2022-23 is progressive, providing a broad-spectrum boost to the economy, particularly with its emphasis on improving the country’s infrastructure. The government has increased the Capex target by 35.4 percent, from INR 5.54 lakh crore to INR 7.50 lakh crore, potentially boosting overall spending for economic growth. The budget also emphasises the importance of appropriate urban planning, while simultaneously providing some assistance to states and keeping the budgetary deficit in check. Another significant plus is that the government’s goal of creating 6 million new jobs over the next five years will allow residential real estate to expand across the country. In a post-covid era, it’s a good budget since it hasn’t altered the tax system, leaving individual discretionary incomes unaffected, and the government has continued on its stated path to job creation. However, a few pressing issues in the real estate sector remain unaddressed, such as granting the sector industrial status and tax breaks on home loans to enhance buyer confidence.”

Mr. Nitin Gupta, President- Sales, Marketing, and CRM (Head) at Mantra Properties and Developers, said, “We welcome the Union budget which is full of optimism with the growth and development agenda. It’s promising and almost all of the industry-specific requirements have been addressed in this budget. The main focus was on the upcoming sunrise industries. Along with that a sum of Rs. 48000 Crore has been allocated for affordable housing, which is certainly for the betterment of the real estate industry.
On the other hand, a fiscal deficit of 6.4 percent is absolutely the right figure at present, and the plus point with that is the capital expenditure which has seemingly gone up. On a whole, it’s a very positive move keeping in mind the real estate sector growth. Battery swapping policy has been introduced keeping in mind the electronic energy vehicle system which is again a visionary step towards clean and sustainable energy development policies. Also for the first time, it has been announced in the budget to introduce digital currency by the Reserve Bank of India, which is a revolutionary idea altogether. Overall, the 2022 Government budget is visionary, sustainable have almost everything with a growth perspective for various sectors.”