Budget reaction: Real Estate sector

3 Feb 2022 , 11:00 AM

Industry expected tax reduction and some keynote announcements to emerge stronger after the two waves of the pandemic. However, an increase in capital expenditure will boost the infrastructure sector and industry.

PMAY would cost 48,000 crores and will be used to build roughly 80 lakh houses, according to the FM. Single-window environmental approvals, Central Government working with the state governments for time reduction required for all land and construction-related sanctions, will help boost the affordable housing market.

If the government had given some more loan interest deductions, it would have encouraged more middle-class buyers to invest in property.

Up to five existing academic institutions in different regions will be recognized as centers of excellence to generate India-specific expertise in urban planning and design and to give accredited training in these areas. Up to five existing academic institutions in different regions will be recognized as centers of excellence to generate India-specific expertise in urban planning and design and to give accredited training in these areas. Grant money of 250 crores would be allocated to each of these institutions. AICTE will also take the lead in improving the curriculum, quality, and accessibility of urban planning courses at other universities.

The ECLGS (Emergency Credit Line Guarantee Scheme) would be extended till March 2023, with an additional Rs 50,000 crore in guarantee protection. In the financial year 2023, Rs 1500 crore has been set aside for development in the northeast.

Overall, a budget that is both balanced and growth-oriented.

The author of this article is Mr. Ashish Khajanchi, CFA Principal Associate Finance  Studio archohm

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com