The realty industry on Wednesday termed the Union Budget 2023-24 as balanced which is likely to boost demand in the housing sector.
The enhanced allocation for the Pradhan Mantri Awas Yojana by 66 per cent to over Rs 79,000 crore is certainly a boost for affordable housing, which was flagging due to increased input costs and also because the buyers in this segment, mostly from the unorganized sector, were still reeling under the impact of the Covid pandemic, said Anuj Puri, chairman of the ANAROCK Group.
It is another step towards the government’s Housing for All mission, he added.
“Changes in the income tax slabs, including exemption for income up to Rs 7 lakhs under the new tax regime and the new tax slabs, will doubtlessly benefit the middle class. However, whether the housing sector will get a collateral boost remains to be seen. The new tax regime offers no benefits that taxpayers can avail of under any Sections, including Section 80C – the previous home loan tax benefits,” Puri said.
Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, said: “Measures such as an increased outlay for affordable housing, enhanced focus on tourism and development of unity malls in key cities across the country would give a fillip to the real estate sector, which will be further aided by the tax relief to citizens which should boost consumption appetite.
“Moreover, the sustained attention on manufacturing and improvement of urban infrastructure is likely to boost the I&L sector and at the same time spur economic activity and job creation.”
Manoj Gaur, President of CREDAI NCR, said that through the Union Budget, the Centre continues to focus on the empowerment of youth, women, OBCs and farmers.
“An increased capital outlay for a third year in a row to Rs 10 lakh crore amounting to 3.3 per cent of the GDP, a hike of 66 per cent to over Rs 79,000 crore for PM Awas Yojana and the Rs 9,000 crore Credit Guarantee Scheme for MSMEs, will have a positive multiplier effect on economic growth,” he added.
Harsh Bansal, Chairman of the CII Delhi Panel on UD, RE & Infra, said that one of the direct impacts on real estate would be through increased demand as the Finance Minister increased the income tax rebate to Rs 7 lakhs, which will help demand in the affordable housing segment; also, the new tax regime means that people will have more disposable income at hand leading to increased demand in all real estate segments.
“For housing, the government outlined its priority by announcing the bumper increase in PM Awaas Yojana outlay by 66 per cent to Rs 79,000 crore; additionally, the Finance Minister announced support to various states to help develop sustainable cities for tomorrow,” he added.
Navin M. Raheja, Chairman and Managing Director of Raheja Developers, said that the budget also nudges the states and cities to take up urban planning, and we expect this to lead to planned real estate development in the country.
“It will also improve living standards in cities and provide developers with an opportunity to provide a better home.”
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