India’s Union Budget of 2023 was released at a time when the global economy had been facing severe challenges. The budget draws direct implications from inflationary fears of the West, global recession, massive unemployment, and a resurfacing pandemic. Despite the challenges, India prioritized Capital expenditure and infrastructural development in India alone, which accounted for a third of its budgetary finances.
Looking closely, the Indian real estate sector garnered considerable attention from the budgetary allocations. One of the major highlights was the allocation of 48,000 Crore under the Pradhan Mantri Awas Yojana (PMAY). However, the very allocation for PMAY houses didn’t overshadow the net provisions extended to the real estate market in India. A number of approvals, including tax deductions and incentives to boost affordable housing, were sure to bolster real estate growth in India.
Let’s have a closer look at how big an impact the real estate budget 2023 has in the domains of real estate sales and marketing.
Real estate prop-tech reaped huge benefits from the real estate budget 2023. A number of innovative strategies were prioritized, envisaging the overall growth and development of the proptech industry in the Indian real estate sector.
In this article, we will analyze the positive impact, opportunities, and further implications of the budget on the real estate prop-tech and real estate sales in the country.
· Economic Boosters
Economic upliftment was one of the primary focus areas of the recently concluded budget. The government consolidated its vision to transform India from the levels of a developing to a developed country. It gave a major impetus to the developmental activities in the infrastructural sector and real estate stands with allocations of about 5.54 Lakh Crore to its name.
A number of steps to boost the overall economic demand were also made in the budgetary proposals. These include stamp duty cuts and tax reductions to promote affordable housing. Incentives were also offered to further home-buying activities in the state. Despite inflationary concerns, the government didn’t come up with overt measures to quell the hopes of individuals taking home loans. It vocalized its commitment to aid the real estate proptech sector.
· Ease of Doing Business
India has made steady progress in its overall ease of doing business ranking, reaching 63rd from the previous 142nd rank. The government continued its vision to serve as a business-friendly destination, inviting enterprises from the world over to invest more in the country’s resources. The budget also focused on the country’s vision to obviate unnecessary complications and reduce the headwinds for carrying out business activities in the country’s developing economy.
Some of the notable incentives proposed by the real estate budget 2023 include simplifying the GST processes and providing tax reliefs to encourage real estate growth in India. It also includes simplifying tax return filings and project approval durations in the country.
· Focus on Urban Planning in Tier 2 And Tier 3 Cities
Yet another highlight of the recently concluded budget was the Urban Infrastructural development fund (UIDF) allocation. Though affordable housing schemes were plenty in the country, their regeneration and penetration to Tier 2 and Tier 3 cities were still debatable. The introduction of UIDF, in addition to the already existing Rural Infrastructure Development Fund (RIDF), will contribute to comprehensive developmental activities in the country.
Many modern tech companies in India became location agnostic with the onset of the global pandemic, and Work from anywhere garnered traction. At this juncture, real estate services underwent a paradigm shift. Many companies started making plans to shift their bases from the expensive tier 1 cities to the affordable tier 2 and tier 3 cities in the country. This harbingers massive growth potential and opportunities in the Indian real estate sector.
· Infrastructural Development
Capital expenditure investments will have a multiplying effect on other sectors of the economy. Keeping that in mind, the government has extended a substantial proportion of its budgetary numbers to further the infrastructural development in India. Improved infrastructure will spearhead developmental activities in the long run, and the real estate sector is anticipated to reap huge rewards from these developments.
Real estate investors look for promising growth opportunities, and sound infrastructure is undoubtedly one of the major driving factors that attract them in large numbers. With the onset of large-scale developmental projects and activities, India beholds extended foreign investments in its real estate fronts. It is also expected to spike the prices of individual households and enhance their overall value.
· Focus on Affordable Housing
Housing is part of the priority sector lending targets of the Indian banking Industry. The government stands tall in its commitment to providing affordable housing opportunities for its citizens. The PMAY promises allocations in the range of 25,000 crores to the Urban sector and 54,000 crores to the rural sector.
The government is also striving to reduce the interplay of middlemen in these affordable housing schemes such that the beneficiaries reap maximum rewards from them. The extension and allocation of additional funds ensure that the government stands committed to its vision to hit the target of 20 million PMAY houses for its citizens through the PMAY scheme.
· Assisting Cities with Municipal Bonds
The Indian real estate sector also benefits from government support to assist cities with issuing municipal bonds. This calls for enhanced developmental activities, and it is a no-brainer that the real estate market in India will witness accelerated growth.
The government has relaxed a number of limitations and increased the spending limits for municipal bonds. This means that municipalities will be able to find more funds by issuing municipal bonds. It also leads to a spike in the developmental activities in the local communities with a major impetus on the public infrastructure frontiers. These developmental activities promise more investor focus, and a renewed vigor in real estate marketing and sales is also anticipated. Real estate services also eye promising growth and expect better returns with the clairvoyant intervention and extended support of the government authorities.
The Union Budget 2023 envisages ‘Amrith Kaal’, a period of growth and prosperity as India awaits its centenary year of Independence. Upholding its commitment towards sustainable development, the Indian real estate sector will witness accelerated growth and reinvigorated developmental activities in the imminent future. You can also visit here Now https://businesszag.com/