The year 2022 is full of opportunities for the real estate sector. Union Finance Minister on February 1, presented Budget 2022. As per the expert opinions, this budget will have a huge impact on the real estate market.
The real estate sector is expected to contribute 13% to India’s GDP by 2025 and we are going to see stimulating demand for better infrastructure, and larger homes.
With a strong focus on the affordable housing sector and infrastructure development, the budget will give a boost to the real estate sector.
“When one gets a home, a poor person gets courage,” said Finance Minister Nirmala Sitharaman while announcing the budget 2022, clearly showing the government’s priority when it comes to homes.
Budget Impact on Housing Development
The Government is going to focus on the “Housing for all” mission and aim to build over 80 lakh affordable houses by 2023. These houses will be developed under the flagship housing development scheme “Pradhan Mantri Awas Yojana” (PMAY). It will provide an opportunity to lower and middle class sections to own a housing unit at an affordable cost.
Govt has allocated Rs 48,000 crore for the stalled projects under the affordable housing schemes across the nation. This affordable housing sector will give a boost to construction and allied industries related to the real estate sector.
Urban Planning And Real Estate
Budget 2022 is aimed at establishing a high level committee for planners, economists, and institutions to provide expert recommendations on urban sector policies, capacity building, and planning. We can see huge growth in the commercial real estate market.
Budget 2022 Impact On The Real Estate Industry – Key Announcements
Budget 2022 has both direct and indirect impacts on the real estate industry. The Government has announced the “Housing for all” mission and allocated Rs 4400 crore under PM Avas Yojna focusing on both rural and urban areas.
Some of the major highlights of Budget 2022 which will directly or indirectly impact the real estate sector are:
- This budget’s unwavering focus on infrastructure and sustainability will boost real estate growth by 2023.
- The National Highway network will be expanded by 25,000 km in 2022-23.
- PM Gati Shakti got INR 20,000 crore to speed up this project.
- Rs 48,000 Cr for PMAY Urban and Rural aiming for the ‘Housing for All’ initiative.
- Affordable housing for financially weak sections.
- Boost to the logistics and infrastructure sector.
Conclusions
The Union Budget 2022-23 is very progressive for building the infrastructure of the country. With a budget allocated of Rs.48 billion for the completion of 80 million houses by 2023 and 60,000 homes as PMAY beneficiaries, housing for all is the government’s top priority.
The boost to the infrastructure, affordable housing, urban planning will greatly enhance the real estate market and is going to grow more. As per the real estate experts, this budget is very friendly to the real estate market both directly and indirectly. We can see consistent growth for the realty sector in the next five years.
