Union Budget 2022-23: Real Estate Highlights
The Real Estate industry in India is one of the highest employment-generating sectors. The pandemic caused a huge economic slowdown in this sector.
On 1st Feb 2022, our finance minister Nirmala Sitharaman presented the union budget 2022-23 to the parliament. This year’s budget focused a lot on infrastructure and development. It was based on a vision for the next 25 years.
Union Budget 2022-23: Real Estate Highlights and Changes
The Union budget of 2022-23 encouraged macro growth and micro development. It covered many established and emerging sectors like tech-induced growth, energy sector, fin-tech, infrastructure development, digital rupee, start-ups, and climate as major focused areas.
Affordable Housing- Pradhan Mantri Awas Yojana
More than 60 million people in India can not afford a sufficient house. Therefore the Indian government launched Pradhan Mantri Awas Yojana in 2015. It is planned to provide 2 crores of affordable houses by March 2022. The Union Budget 2022-23 further allotted rs. 48,000 crores for the development and completion of 8 million houses under the Pradhan Mantri Awas Yojana( Urban & Gramin).
Advancement for Housing in 2 Tier & 3 Tier
The pandemic led people to prefer work-from-home culture, which increased the real estate investment and demand for houses in 2-tier and 3-tier cities. To take advantage of the situation, the Indian government is doing corrective steps in 2-tier and 3-tier cities for elevating the infrastructure of towns.
Work-from-home culture also increased the demand for bigger homes with better facilities. Which explains Why will Luxury Real Estate Sell Fast in 2023?
Vibrant Village Program
Vibrant Village Program has been developed for the Infrastructural development of northern border villages of India. The scattered population of those villages shall be covered under the development of housing, infrastructure, road connectivity, renewable energy access, tourism, access to education, and livelihood generation choices.
Solar Modules
Solar modules are the future. Our future seems to be developing and surviving better on Solar energy. And to support this idea, and solar energy initiatives like solar module manufacturing in real estate, the budget of rs. 19,500 crores were allotted. This was to facilitate the sustainable energy prospect in real estate in surat.
Digital Transaction
The introduction of the digital rupee in India is a way of maintaining transparency in Real Estate transactions in the coming years. The digital rupee will be developed using blockchain technology and will be issued by RBI under strict guidelines. This will be a big help to the developer's community for their commercial and residential real estate projects.
Reduced Corporate Surcharge
It has been a relief to the real estate developer community as the corporate surcharge has been reduced from 12% to 7%.
Academic Centres of Excellence
Our government understands the fact that the success of real estate development lies in the planning and infrastructure. Therefore, for the future of strong infrastructure development, 5 academic centers of excellence have been proposed with a budget of rs.250 crores each. This is to actually build better top real estate developers.
Council for Urban Planning
The budget for this year proposed setting up a high-level council for urban planning. A council of think tanks like economists, planners, and academic institutions to suggest efficient urban planning policies and capabilities we need to increase commercial and residential real estate prospects. The Indian government is focusing on balanced real estate growth including the growth of tier 1 and tier 2 cities.
PM Gati Shakti
PM Gati Shakti is a digital platform to bring together 16 ministries of railway and transport for integrated and seamless multi-modal connectivity. A total of 25,000 Km have been allotted to different projects to smoothen the supply chain and uplift the manufacturing sector.
This year’s budget(real estate sector) was introduced focusing on the improvement of the real estate Builders in India and thus increasing the expenditure to uplift the demand, supply, and investment.
The budget was very much in favor of both the buyers and developers. And the hope for the coming budget is just the same. This is why it is the best time to invest in real estate: India.
FAQs
- How can academic centers of excellence help improve the real estate industry?
Ans. The success of real estate development lies in the planning and infrastructure. Therefore, academic centers of excellence can help for the future of strong infrastructure development, which directly helps improve the real estate industry. - How has the corporate surcharge this year relieved the real estate developers?
Ans. It has been a relief to the real estate developer community as the corporate surcharge has been reduced from 12% to 7%. - How will the digital rupee be created?
Ans. The digital rupee will be developed using blockchain technology and will be issued by RBI under strict guidelines.
