Budget 2023 instills hope in real estate for long-term growth
Source: Financial Express ( http://bit.ly/3KS7vY3 )
Several measures were announced to encourage investments and stimulate the economy’s growth. Besides the increased fund allocation for PMAY, these measures are expected to have positive implications for the real estate sector in the coming years. Realty experts have welcomed these announcements in their response to the Union Budget 2023.
S K Narvar, Group Chairman, Trident Realty, said, “This year’s Union Budget is future-focused on real estate. The increase in PMAY’s budgetary allocation by 66% to Rs 79000 crore will help countless Indians to realise their dreams of owning a home, helping the government accomplish the ‘housing for all’ objective. Furthermore, the threshold for income tax rebates has been increased from Rs 5 lakh to Rs 7 lakh, which will result in higher buying power for the middle class. This move, aimed at providing relief to middle-class citizens, will encourage them to invest more in real estate. With higher disposable incomes, more people would be in a position to buy a home in Tier 2 and 3 cities, which in turn will increase housing demand and boost the emerging real estate markets.”
The Budget 2023 also gave an impetus to the infrastructure segment. The government has established an Urban Infrastructure Development Fund with an annual budget that will be utilised to build a balanced and sustainable infrastructure in tier-2 and tier-3 cities to encourage cities to implement urban planning reforms.
These measures are likely to help increase the quality of life for their citizens, boost employment opportunities, and attract more businesses to the cities.
The Union Budget 2023 provides key support and incentives to the real estate sector. Overall, the budget presented a promising picture to real estate players, indicating a positive future ahead.