Maharashtra Budget Offers Panchasutri Development Model
Subhankar Mitra, Managing Director, Advisory Services, Colliers India, "Maharashtra aspires to grow at 12.1% in the fiscal year 22-23 with a hope of becoming the first state with a trillion-dollar economy. On the allocations side, there was a significant sum provisioned for the public works department to improve the infrastructure. There also increased allocation in upgrading public government schools and women's hospitals. The spending on infrastructure particularly in and around the urban areas would promote development and can augment the supply of affordable housing. There is also a separate fund allocation to improve the slums outside Mumbai, which will help many adjoining areas to have a better living quality". Boman Irani, President, CREDAI-MCHI, “We welcome the Government’s much-awaited and forward-looking amnesty scheme in the state government’s budget of 2022. Aimed at incentivizing the construction business with extension for stamp duty for a period of 3 years echoes well from an investor point of view. However, we were hoping that the existing issue of deferment of the upcoming 1% metro cess will also be considered by the Government of Maharashtra. Its deferment by at least 2 years can prove to be a major relief for the sector, especially in an environment where we are facing rising cost pressures due to the cost of raw materials, and the effects of the geopolitical scenario.” Shishir Baijal Chairman & Managing Director at Knight Frank India, “We welcome the Maharashtra state government’s budget which has placed adequate thrust on infrastructure development with an allocations of INR 28,000 crores for transportation infrastructure that would help develop roads, highways as well as airport and other infrastructure. The growth in infrastructure will be critical for the state’s future growth. The budget has also paid attention to energy sector as India moves towards energy efficiencies and becoming a green country. The Maharashtra State government has given a very systematic outlook for the development of the state in new budget. Their commitment towards holistic growth is clearly understood from the way budget is categorized. ” Ram Raheja, Director, S Raheja Realty, “The state budget has an optimistic projection from an economic stand-point, which is likely to boost sentiment. The budget estimate has seen a rise as compared to the previous year; from revenue receipts of Rs. 3,68,987 crore for 2021-2022 to Rs. 4,03,427 crores to 2022-23. Allocation to infrastructural development will support demand for residential properties. Increase in metro lines will certainly provide impetus to demand for homes in those locations. To give incentive to construction business, the time period stipulated under article 5 (g-a) (ii) of Maharashtra Stamp Act is increased from one year to three year. Premium segment will, therefore, see a rise in investor demand as sale of home within three years of purchase will allow the seller to get a refund on the stamp duty. Initially this refund was available only for a year since the purchase. This time extension is a positive move, especially for the luxury housing sector.” Ajay Sharma, Managing Director, Valuation Services, Colliers India, ‘The Panchasutri development model adopted focused on shoring healthcare, agriculture and infrastructure. If the investment being made across the state will spur growth in services economy while specific to real estate the provision of 6000cr for 5 lakh units affordable housing scheme will positively Impact the segment. Further on urban development front, funds to improve slum conditions outside Mumbai will push redevelopment programs and creation of innovation hubs can spur growth in new areas if implemented well. Pune metro expansion is likely to contribute real estate growth in south and south-western parts of the city while the increased connectivity of Mumbai metro will enhance urban livability and connectivity".
Tags : Real Estate Reactions Budget Maharashtra’s Deputy Chief Minister Ajit Pawar Ajay Sharma Managing Director Valuation Services Colliers India Ram Raheja Director S Raheja Realty Shishir Baijal Chairman & Managing Director at Knight Frank India Boman Irani President CREDAI-MCHI Subhankar Mitra Managing Director Advisory Services Colliers India