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Union Budget 2023: Big boost for affordable housing

Nirmala Sitharaman Budget Speech, India Budget 2023: Presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman announces that the capital investment increases for the third year by 33% to 10 lakh crores which come to 3.3% of GDP. The Minister’s speech also lays emphasis on infrastructure and jobs ahead of Modi government’s last full-fledged Budget before the Lok Sabha elections in 2024.

The finance minister said that the proposal in the budget were around seven priorities: inclusive development, reaching the last mile, infra and investment, unleashing the potential, green growth, youth power and financial sector. The main highlight of the budget was the five major announcements related to personal income tax, including a change in tax slab under the new tax regime.

How the industry reacted:

Mr. Kamal Khetan, Chairman & Managing Director, Sunteck Realty Ltd. : The 2023 Union Budget appears to be balanced and encouraging. It has essentially given every sector some benefits that will help businesses accelerate their growth graphs.

The PMAY budget, which has been increased by 66 percent to Rs 79,000 crore from Rs 48,000 crore, will help to significantly increase affordable housing and achieve the goal of housing for all.  The budget also focuses on Green Growth which will lead to sustainable ecosystem development promoting efficient transportation systems and energy storage systems leading better housing infrastructure. 

The budget has focused on capital expenditure as well consumption. Overall, it is a progressive budget that will undoubtedly encourage the real estate sector’s expansion.

Manpreet Singh Chadha, chairman, Wave Group: The union budget 2023-24 is a unique combination of capital expenditure and consumption-led sustained high trajectory growth. The budget proposal has set the foundation of India’s long-term story with a significant increase in capital expenditure of Rs 10 lakh crore combined with substantial relief in direct income tax to individuals.

With a particular focus on better infrastructure to enhance connectivity, the real estate sector will witness a further rise in demand, particularly in the affordable segment. Continuation of interest subsidy for first-time home buyers under PMAY will help affordable housing, which was impacted immediately after Covid. This impetus to market will also allow developers to generate revenue, cash flows and timely completion of projects.

Dinesh Doshi, President, NAREDCO Progressive Neral Karjat: A positive Budget Speech by the Hon’ble Finance Minister, best described as ‘balanced and pro-growth’, has a major positive for real estate comes in form of enhanced outlay for PM Awaas Yojana by 66 percent to over Rs. 79,000 crore.

Gautam Thacker, Chairman, NAREDCO Progressive Neral Karjat: This will ensure the push to develop Affordable Housing. “In sync with this, real estate industry will look forward to CLSS scheme also being reintroduced, which will ensure a larger impact,” added Gautam Thacker, From the perspective of Neral Karjat as also ‘Mumbai 3.0’, the Green credits scheme will support sustainable homes and carbon neutral development, said Dinesh Doshi. “We are glad that the Indian Government is taking steps towards creating Carbon Neutral Development, which dove-tails into growth prospects for Mumbai 3.0. It is a welcome first step, and we have a long way to go,”

Pradeep Aggarwal, founder & chairman, Signature Global (India): This year’s budget touched upon the most critical issue for the revival and growth of the affordable housing segment. PMAY’s budgetary allocation increased by 66%, which is good news for affordable housing. Also, the increased allocation will lead to more housing projects being taken up, in both rural and urban areas. The scheme will provide a much-needed boost to the housing sector and continue to assist those from the EWS and LIG sections of society in owning a home.


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