Despite not getting any incentive from the Government in Budget 22-23, the realtors feel that push for infrastructure and the overall economy will pave the way for increased real estate demand. The support to MSMEs, plans for Tier II-III cities, data centres, start-ups, etc., will lead to job creation and business development which will turn into a demand for all real estate segments.

“The push to infrastructure development and development of highways may open new avenues for real estate in newer places. The focus on Tier II-III cities will lead to employment generation here that will act as a catalyst for housing and commercial demand in these places. Though real estate did not get anything directly from Budget 22-223, the initiatives of the Government has opened up much more scope for the sector. However, we were expecting some initiatives for the sector that has been grappling with issues of Input Tax Credit, availability of finances, GST matter, etc,” says Kushagra Ansal, President CREDAI Haryana & Director, Ansal Housing.

The focus to materialise 8-8.5 per cent GDP growth as envisaged in the Economic Survey, the Government announced measures for the ‘engines of growth’, which, according to realtors, was the prudent step at this juncture.

“We congratulate the Finance Minister for giving a boost to the entire economy in this Budget. The real estate sector did not get the benefit directly, but the provision made by the Government will benefit this sector. Better connectivity and construction of 80 lakh houses and ‘Housing for All’ allocation of Rs 48,000 crore under PM housing scheme will also create employment opportunities,” said Harvinder Singh Sikka, MD, Sikka Group.

Added Sagar Saxena, Project Head, Spectrum Metro, “In this year’s Budget, special attention has been paid to the entire infrastructure. The real estate sector will also benefit from announcements related to industrial and logistics and data centers, aggressively diversifying the entire real estate sector. Single window clearance, infra-industry status and tax incentives were expected, which did not materialise.”

However, realtors feel that the real estate sector being the largest employer in the country, should have been paid attention to by the Government. “This time, the Budget was as expected. But some demands of the real estate sector remain the same as before. The announcement of 80 lakh houses under PMAY for urban and rural areas reflects Government’s concerted effort and encourages developers in this sector. The focus on improving transportation will certainly help develop affordable homes, which are a priority for home buyers. The Government also said in the Budget that it would work with the financial sector to reduce the cost of middlemen, which would streamline the process and control costs,” said Dhiraj Bora, Head Marketing & Communications, Paramount Group.

Some feel that focusing on the economy will improve people’s financial condition leading them to further invest in real estate assets. “We foresee an increase in demand for all segments of the residential and commercial segment after the Budget. The sales momentum had already picked up pace after the second wave; now, with the Government’s focus on economic growth, we expect that the real estate sector will at least reach the pre-COVID levels,” said Pawan Sharma, Director, Trisol RED Infraventures Pvt Ltd.