NAREDCO Vice Chairperson Dr. Niranjan Hiranandani rates the budget as 8/ 10. “India has prudently maneuvered global and economical storms. It has aptly addressed the economic growth of India by augmenting the capital expenditure outlays in infrastructure up to Rs 10lakh crores accounting to nearly 3.3% of GDP. This will have a multiplier effect on real estate asset classes like the residential, commercial, industrial and logistics sector. Incremental PMAY allocation upto Rs 79,000crores will give impetus to affordable housing. Rebates in personal tax will permit additional disposable income in the hands of the discerning homebuyers to be invested back in a safe asset ‘home’.”
Anuj Puri, Chairman – ANAROCK Group expressed, “The new measures announced in the Union Budget 2023-24 may certainly help unleash Indian economy’s potential. However, from a real estate point of view, there were no major direct announcements that could be seen as immediate booster shots.”
Boman Irani - President – CREDAI MCHI stated, “Budget 2023-24 is well balanced, giving special impetus to the deficit concern and borrowings. Additionally, Rs. 10 lakh crore capital investment, a steep increase of 33%, will enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds, which will help the real estate sector to maintain stability. However, the new tax regime offers no incentives, especially tax exemption on housing loans which may have a slight negative impact on the real estate sector in the short term, especially considering the fact that the sector is yet to recover fully.”
Pradeep Aggarwal, Founder & Chairman, Signature Global (India), Ltd.- This year’s budget touched upon the most critical issue for the revival and growth of the affordable housing segment. The new allocation of Rs 79000 crores in the budget 2022-23 will help countless Indians realize home aspirations. Also, the increased allocation will lead to more housing projects being taken up, in both rural and urban areas.”
Surendra Hiranandani, Chairman and Managing Director- House of Hiranandani said, “The government's commitment on green development is commendable, especially given its emphasis on urban and green infrastructure. With that said, we predict that the following years will be dominated by urban and green initiatives across the country.”
Atul Goyal, CFO- Brigade Enterprises Ltd stated, “With respect to real estate, the extension of tax benefits to funds relocating to GIFT City till 2025 will enhance business activities in the region. The reduction in personal income tax and indirect taxes will enable individuals to have additional disposable income which enables them to look at investment options including buying homes. The capping of the capital gains benefit at a maximum of Rs. 10 crores for house property will however have a negative impact for the demand for ultra-luxury homes.”
“A thrust on the green economy, startups have been given in the budget along with tax benefit for the startups that may see a spurt in the leasing of office spaces. Initiatives have been taken to empower the middle class with new tax slabs on personal income tax. However the budget did not mention any sops on increasing the limit of home loan interest deduction on income tax returns, which could have spurred investments and boosted residential real estate segment in India. The union budget has not reduced the GST on raw materials like cement, steel that would have boosted the real estate segment”, said Saket Mohta, Managing Director, Merlin Group.
