The Union Finance Minister, Nirmala Sitharaman, presented the Budget 2023–24 to the Parliament. During her budget presentation, she mentioned that the government has created various plans which would improve the nation’s infrastructure and real estate. The real estate sector welcomed the increased allocation in capital expenditure and focus on infrastructure creation which is likely to boost the housing demand. The sector was looking forward to the upcoming budget, as a slew of policy overhauls and regulatory impetus were expected but the several pleas presented by the industry to the Government were largely ignored.

Here are the reactions from the industry experts on the budget announcement by the Finance Minister:

Mr. Sandeep Runwal – President, NAREDCO Maharashtra

“The honorable Finance Minister, Smt Nirmala Sitharaman deserves praise for the hard work in meeting the aspirations of the public through lowering income tax brackets and driving forward growth with an increased infrastructure budget.

The Pradhan Mantri Awaas Yojana (PMAY) is a lofty initiative by the central government, aiming to bring affordable housing for all by 2022. During her speech, the honorable finance minister declared a staggering 66% increase in funding for the scheme, increasing it to Rs 79,000 crore for the next fiscal year.

This allocated amount is expected to address more than 55% of the estimated deficit in funds for projects under the scheme, providing a huge impetus in providing housing to those in need and bridging the gap between those without access to proper dwellings and those who do. This improved subsidy will ensure that urban and rural homes are constructed within the allocated time frame and according to the set standards.

The First Budget of Amrit Kaal, Budget 2023, struck all the right chords. Income Tax Reforms ensured more disposable income in the hands of citizens to accelerate demand-based growth. Increased Capex funding will ensure job growth in the short term and economic competitiveness of the Indian Economy in the Long Term. The benefits accrued from this reform will help in ease of Living and improving the quality of Life of citizens, Ease of Getting Approvals and doing business by Technology led transformation of Common Property Identifier, Green and Sustainable Cities, signaling an era of Net Zero Movement in India and access to finance by extending ECLGS Scheme of 2 Lakh Crore.

The system of ‘Unified Filing Process’ set up will help in filing information or return in simplified forms on a common portal which will be shared with other agencies as per the filer’s choice.

The fifty-year interest-free loan to States should be spent on capital expenditure within 2023-24. Most of this will be at the discretion of states, but a part will be conditional on states increasing their actual capital expenditure.

The government has also taken an honest effort to reduce taxes from all the tax slabs which is a great initiative. By expanding the income tax rebate for people earning up to Rs 7 lakhs from the previous Rs 5 lakhs, the central government will offer tremendous relief to countless citizens.”

Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI-MCHI

“The Government has laid an emphasis on economic growth and job creation in the Union budget announced. As far as the real estate sector is considered, the enhancement of the PMAY Fund by 66% to Rs. 79,000 crores will be a big boost for the affordable housing segment. This has yet again highlighted the Government’s vision of Housing for All. Also, the increase of the income tax exemption limit up to Rs 7 lakh under the new tax regime will encourage a lot of homebuyers to buy their dream homes.

The enhanced capital expenditure of ₹ 10 lakh crore for infrastructure development will fast-track the implementation of bigger infrastructure projects which in turn will propel the growth of the real estate sector and help drive demand. It will go a long way in supporting the MSME sector and reviving industrial activity.

Through Ease of Doing Business, the Government continues to encourage digitization and fintech innovation. The focus on the creation of digital infra, a single portal for ease-of-doing business, and digital skilling will strengthen the start-up ecosystem.

It could have been a better budget for the real estate sector which is also the second largest employment generator after agriculture. Overall, a progressive budget with the Government’s emphasis on job creation, building a robust infrastructure, and revitalizing the economy.”

Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory

“The union budget presented by the honorable finance minister, Smt Niramala Sitharaman emphasizes growth and comprehensive development with a view to enhancing citizen welfare. The government in this year’s budget has made allocations to expand infrastructure, healthcare, education, skilling, rural welfare, and digitalization. The government is investing heavily in capital expenditure to invigorate the Indian economy and create new job opportunities.

The central government has reduced taxes across all tax brackets, enabling the middle class to save more of their income. The increase in the income tax exemption rebate from Rs 5 lakhs to Rs 7 lakhs will benefit thousands of people by providing more disposable income in their hands. Lowering personal taxes will provide prospective homeowners with additional funds that they can put towards acquiring a home, which is a solid and reliable investment.

The government has reinforced its commitment to providing housing for all by substantially increasing the funding for the Pradhan Mantri Awas Yojana, from Rs 47,500 crores last year to Rs 79,000 crores in 2023-24. Through this initiative, the government aims to fill the gap between those without decent housing and those who do, by providing a better housing subsidy. This extra funding will help ensure that both urban and rural homes are built quickly and up to the required standards.

The government has also increased the total capital expenditure on infrastructure development by 33%, accounting for 3.3 percent of our GDP at Rs 10 lakh crore. This will have a positive impact on the Indian industry and create employment opportunities.

The Centre has offered 50-year interest-free loans to state governments for another year, with a total expense of ₹1.3 lakh crore. This initiative will stimulate infrastructure development in each of the states and also help promote local industries.”

Mr. Bhushan Nemlekar – Director, Sumit Woods Limited

“The real estate sector was eagerly looking forward to the Union Budget 2023-24 hoping for incentives and several rebates. Although the focus of the Union Budget 2022 was on overall economic development, the only thing to cheer for the real estate industry was the increase in outlay for PM Awas Yojana by 66% to over Rs 79,000 crore. This is expected to further boost the government’s program to provide housing to the urban poor.

We are also pleased that the government has recognized infrastructure and investment as one of the 7 priorities that the budget is based on. The 33% higher capital outlay of Rs 10 lakh crore on infrastructure development will lay a foundation for Tier 2 & Tier 3 cities to transform into centers of economic growth.

There were heavy expectations for tax deductions and the increase in income rebate limit to Rs 7 lakh from Rs 5 lakh in the new tax regime will encourage homebuyers to invest in real estate boosting the overall demand.

It is undoubtedly a progressive budget, especially with its emphasis on economic growth and building infrastructure for the country.”

Mr. Himanshu Jain, VP – Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL)

“The Union Budget 2023-24 continued the government’s focus on the India growth story. The government’s decision to increase the PMAY Fund by 66% to Rs. 79000 crores will be a big boost for affordable housing and is a step in the right direction to achieve the government’s vision of ‘Housing for All’. The Government’s continuous efforts to promote affordable housing to the masses will overall give a boost to the real estate sector in the long term. This budget has again focused heavily on infrastructure that will directly impact the development of housing and increased demand, especially in Tier II & Tier III cities.

The increase in rebate limit to 7 lacks from 5 lacks in the new tax regime will prove to be a boon for first-time home buyers. These additional savings will help them to invest in buying a property and fulfilling their dream of owning a home of their own.”

Mr. Samyak Jain, Director, Siddha Group

“Budget 2023, rolled out by our Hon’ble Finance Minister, Smt Nirmala Sitharaman, has many positives for the Real Estate Industry.

An increase of 66% in the Prime Minister Awas Yojana (PMAY) fund outlay is a step in the right direction, which will not only enhance funding to the lower and affordable housing category but also is in line with the Government’s ‘Housing for All’ policy.

The enhanced capital expenditure of 10 lakh crore for Infrastructure Development will also help fast-track implementation of high-multiplier Government Infrastructure programs within the country; thus supporting the Housing Sector in a big way. Additionally, the proposal to invite more Private Investment participation in Infra Development will pave the way for creating better Infrastructure and improving the housing stock.

We are also very happy to note that First-Time Home Buyers will now be able to better plan to purchase their First Dream Home, as there will be additional savings due to the increase in the Income Tax rebate limit from Rs 5 lakh to Rs 7 Lakh in the new tax regime.

The Government’s Fiscal Support in increasing Digital Payments will also bring in further transparency in real estate dealings.”

Dr. Sachin Chopda, Managing Director, Pushpam Group

“The Urban Infra Development fund (UIDF) proposed investment of Rs 10,000 crore to create infrastructure development in tier II and tier III cities will encourage home buyers to move away from metro cities and seek housing in less congested areas. Peripheral areas outside major cities will also be looked at by home buyers who plan to live there or use it as a second home or simply invest in property and earn rental income from their investment.

The announcement of 50 tourist destinations to be selected through challenge mode and developed as a whole package for domestic and international tourism is a welcome initiative by the government. This has the potential to transform the area from a tourist destination into a second home or weekend getaway. This will help in offering job opportunities for the local people, developing the infrastructure, and improving the lifestyle of the people.

In its fervent attempt to make housing available to a larger section of people, the government has increased the rebate limit from 5 lakhs to 7 lakhs. These savings can spur investments in the real estate sector.”