Torbit Budget Bytes 2023

Dr Niranjan Hiranandani, MD Hiranandani Group and Vice Chairman, Naredco

Augmentation of capital expenditure on infrastructure up to Rs 10 lakh crore, amounting to nearly 3.3% of the GDP will have a multiplier effect on real estate, boosting asset classes like residential, commercial, industrial, and logistics. In addition, 66% increase in PMAY outlay to over Rs 79000 crore will be giving the much-needed push to housing.

Harsh Vardhan Patodia, President, Credai National 

The budget has many positives. An increased capital outlay for a third year in a row,  substantial hike in budgetary allocation for PMAY, Rs 9000 crore credit guarantee scheme for MSMEs , will have a multiplier effect on economic growth and Housing For All. Allocation of Rs 10000 crore to National Housing Bank for infrastructure development and push to regional connectivity will add impetus to Tier 2-3 cities.

Anshuman Magazine, Chairman & CEO-India, SE Asia, Middle East & Africa,, CBRE

This year’s budget scores well on many fronts including its focus on developing infrastructure, meeting green goals, providing tax relief to the middle class and boosting the MSME sector. Measures such as an enhanced outlay for affordable housing, greater focus on tourism and development of unity malls in key cities, push to manufacturing, would give a fillip to the real estate sector.

Nirav Dalal, Chief Investment Officer , Shapoorji Pallonji Real Estate

The budget provides an indirect boost to real estate sector growth. The proposed increase in the income tax exemption limit to Rs 7 lakh will help boost real estate investment. The cap deduction for capital gains on residential housing investment will benefit the sector. While the budget  provides a push to smart cities, the Urban Infrastructure Development Fund will specifically boost real estate development in Tier 2 and Tier 3 cities.

Ramesh Nair, CEOIndia & Market Development Asia, Colliers  

The Rs 10 lakh crore outlay for infrastructure can lead to multiple effects across sectors and set a strong footing for resilient growth. A Rs 79000 crore allocation under PMAY , together with the creation of a large  Urban Infra Development Fund will translate into higher demand for housing and commercial real estate. The government’s focus on creating more decentralised storage facilities along with disinvestment schemes, can unlock immense value in warehousing space.

Parveen Jain , Chairman, Naredco  

From the real estate point of view , the budget puts emphasis on sustainable cities, urban planning reforms, transit-oriented development, affordability, urban infrastructure, incentivised schemes, urban infra fund for cities and  development of Tier 2-3 cities Reduction in income tax will lead to savings and more investments in real estate and housing.

Anuj Puri, Chairman, Anarock

Except for 66% increase in PMAY outlay, there are no booster shots to real estate. The zero tax on 7 lakh income under the new income tax regime is a positive move; its collateral benefit needs to be seen as it offers no benefits to taxpayers under various sections like 80C.The emphasis on urban infra development and last mile connectivity will boost real estate in smaller citiesThe revamped credit guarantee for MSMEs will boost industrial development with a positive rub off on real estate.

Sandeep Runwal, Managing Director, Runwal Group, 

The 66% increase in outlay for PMAY is likely to cover over 55% of the estimated deficit in funding of projcts under this scheme, thereby giving a big fillip to ‘Housing for All’. This hiked allocation will also ensure construction of urban /rural houses in accordance with timelines and quality standards.

Pradeep Aggarwal, Founder & Chairman, Signature Global Group

The income tax rebate up to Rs 7 lakh income will   increase disposable income  and lower financial burden of individuals , making it easier for them to afford housing costs including mortgages and maintenance costs. This together with a hike in PMAY allocation, will help raise demand for affordable housing. Further, boost to infrastructure investments in the budget , will make commuting easier , in turn  making  areas more attractive for housing development.

Amit Kumar, ED, Deloitte India

Hiked allocation for rural housing under PMAY will potentially accelerate the pace of construction (with 2.15 crore houses already completed), in turn boosting rural infrastructure. With this, the rural economy will get boosted as construction of each house provides 314 person days of employment.

Shishir Baijal, Chairman Knight Frank India

The increased outlay towards PMAY will help maintain the momentum towards affordable housing, in turn expediting the ‘Housing for All’ programme. The infra boost through railways, waterways, ports, airports, tourism and hospitality will indirectly benefit the real estate sector. The impetus to transit-oriented infra will help boost realty sector growth in mid-t0-long term.

Aaditya Sharda, Co-Founder Infra.Market

It is an impactful budget to build resilient infra. The increased CapEX will boost the industry and increase construction and development activities . The push to PMAY will have ripple effect on the transportation and infra sector. However, the impact of the budget on the construction sector will depend upon effective implementation , market conditions and economic and political situation.

Deepak Kapoor, Director, Gulshan Group

The increase of Rs 33% to Rs 79000 crore in allocation for PMAY , a jump of 33% to Rs 10 lakh crore in capital investment outlay , together with Rs 10000 crore annual urban infra development  fund are expected to aid the growth of real estate development. A rebate in income  tax rates  will indirectly boost the real estate sector.

Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group

The focus on expanding infra CapEX will help create seamless connectivity between manufacturing sites, consumption centres and ports, attracting more industrial investmentsMoreover, the urban development fund to be set up in Tier 2-3  cities will add to an increased demand for Grade A warehousing space Further, government’s focus on green growth in infra and mobility sectors will help meet larger sustainability goals.

Dr Samantak Das, Chief Economist, JLL India

The personal tax relief enhancing disposable income will, to a large extent, ease the burden on account of higher home loan EMIs and increased home prices. The higher allocation under PMAY will ensure continuous inflows to CLSS and other such schemes, thereby boosting affordable housing. Further, the focus on sustainable cities, TOD and Tier2-3 cities will boost urban development.

Ankit Kansal, Founder & Managing Director, 360 Realtors

The budget shows the government’s commitment to systematically dismantle structural bottlenecks, fuelling infrastructure growth. The urban infra fund will help bridge the gap of Tier2-3 cities with large metros, boosting demand for commercial and residential real estate. The increased investments towards urbanization-power, water supply, construction activities etc will  invigorate real estate demand by catalyzing economic growth and urban development.

Manoj Gaur, Chairman & MD, Gaurs Group & President Credai NCR  

A high CapEX and NHB outlay for infra development , besides substantially increased  PMAY outlay and continuing focus on urban planning  reforms to develop sustainable  cities bodes well for the real estate and infra sector. Moreover the boost to regional connectivity through 50 more airports, helipads, water aero drones , advanced landing grounds will boost realty in Tier 2-3 cities. The reduced compliance burden by decriminalising more than 3400 legal provisions , will boost ease of doing business , thereby promoting realty growth.