JOIN USUnion Budget 2022 | Reactions from the realty and infrastructure sector
The announcements towards the PMAY program shows that the Government is determined to boost Affordable Housing
Mr. Ashish R Puravankara, Managing Director, Puravankara Limited
“The Union Budget 2022 promises to be a growth-oriented and future-forward budget that would result in the overall development of the country's economy, infrastructure and logistics. The increase in capital expenditure outlay by 35.4% from Rs 5.54 lakh crore in CY to Rs 7.50 lakh crore in 2022-23 is the biggest takeaway from this Union Budget. The Government's sustainable approach to bolster its PM Gati Shakti mission will promote clean energy while creating lucrative job opportunities.
With regards to the housing sector, we are pleased that the Government has revoked custom duties levied on stainless steel and High Steel Bars. We are hopeful that these savings are passed down to the developers so that the end-users can benefit; this is yet to be determined. The announcements towards the PMAY program shows that the Government is determined to boost Affordable Housing – a growth engine for the sector. While the sector was hopeful for larger changes like GST, we are looking forward to reforms in building by-laws and urban capacity building plans, especially public transit.
Overall, the country's growth is poised at 9.2%. The measures being implemented by the Government will ensure macro-growth across most sectors, enabling the nation to improve its overall efficiency and resulting in a strong built digital economy. Furthermore, it is heartening to see a budget that was inclusive, especially towards sustainability, climate change and recognising mental health as a factor for the nation."
Benefits especially for the middle class and upper class for driving the demand in real estate missing from Budget
By Saurabh Garg, Co-founder and CBO, NoBroker
“I think one of the big focus of this budget is affordable housing. Finance Minister has proposed to invest 48,000 crores in affordable housing which will give a big boost. Almost 80 lakhs houses would be completed this year itself. Another very interesting thing which we have seen this year in NoBroker's real report is that water supply is one of the key reasons for choosing locality. Finance Minister coming in and proposing 60,000 crores to provide water supply to 3.8 crore houses is a right step in this direction. Also, I think creating jobs at this moment is the need of the hour with covid impacting the jobs. So, the government creating 60 lacs jobs is going to help the economy in a big way. All the sectors would benefit out of that, especially these people would also drive demand for housing. We would have expected more benefits especially for the middle class and upper class for driving the demand in real estate. I think that is missing from this budget. But overall I would say it's a budget in the right direction and it's a positive budget.”
The thrust on capital expenditure which saw a hike will play a significant role in boosting the economy
By Mr. Bijay Agarwal, MD, Sattva Group
"The Finance Minister’s digitally presented budget rightly represents the significant balance between growth and fiscal foresight for the Real Estate sector. The government’s move to create a high-level committee for urban planners and economists, for recommendations on urban capacity building, planning implementation, and governance, is an exceptional step to promote the growth of the sector.
We are delighted with the government’s decision to provide easy financing for data centres and energy storage systems. This step by the government will boost India’s stature as a leading data centre hub, on the global stage. This is a step in the right direction, to give further impetus to Digital India.
The allocation of 48,000 crores for PMAY, 80 lakh homes under PMAY, single-window environmental approvals, better co-ordination between the Centre and states for approval processes, and uniform registration of deeds, will provide the much-needed boost to the affordable housing segment. The announcement is in tandem with the industry’s aim to promote and boost the affordable housing segment to achieve the vision of Housing for All.
The thrust on capital expenditure which saw a hike from Rs 5.54 lakh crore in the current year, to Rs 7.50 lakh crore in 2022-23, will play a significant role in boosting the economy"