The Union Budget of 2023 has been hailed as the foundation for building developed India, positioning itself as the “First Budget of Amrit Kaal.” Focused on infrastructure development and ease of doing business, this budget is committed to empowering the hard-working salaried people of India with a revised tax regime.
Please find below, quotes from some leading real estate developers from India; Mahindra Lifespaces, Arvind SmartSpaces and TVS Emerald Realty, following the budget and its implications. We believe they would be a great source to include in your story as they are well-versed in the current business environment, the budget and its implications.
Arvind Subramanian, MD & CEO, Mahindra Lifespaces said, “This year’s budget highlights the importance of infrastructure development, urban planning, affordable housing, domestic manufacturing, ease of doing business, and energy transition with a focus on sustainability.
The increased allocation of Rs 79,000 Crores towards Pradhan Mantri Awas Yojana (PMAY), is expected to provide the supply-side stimulus that will not only aid real estate developers but will also boost end-user demand for affordable homes. Moreover, the revision in income tax slabs and rates will provide more disposable income, further accelerating the demand for homes. We believe the increased outlay of Rs 10,00,000 Crores towards infrastructure development, including the creation of urban infrastructure in Tier 2 and 3 cities will support industrial activity, create new employment opportunities and fuel demand for housing. There is a continued focus on supporting domestic manufacturing, which bodes well for the industrial parks.
As the pioneers of green buildings and sustainable construction in the country, we are particularly pleased to see the government’s commitment to transitioning to green energy and reducing emissions. By taking this important step towards sustainable development, India is further up on its path to meeting its commitment to Net Zero developments.”
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Kamal Singal, MD & CEO, Arvind SmartSpaces, says, “The Union Budget 2023 is a progressive budget with a strong thrust on infrastructure and connectivity, domestic manufacturing, ease of doing business, and green development.
This budget focused on tax reliefs, including a revised income tax rebate from INR 5 lakhs to INR 7 lakhs which will provide customers with a larger share of disposable income. Additionally, the increase in outlay for the PMAY scheme to INR 79,000 Cr is also a positive indicator for the industry and opens the opportunity for newer homebuyers, especially in affordable segment. The government’s plan to create urban infrastructures is expected to accelerate development across tier-2 & tier-3 cities, further creating a demand for residential buildings.
Moreover, it was highly encouraging to see Green Development as one of the key themes of the Budget and we welcome this move which will create awareness regarding the importance of green buildings and environmentally ‘conscious’ construction activities, further enabling India’s ambitious sustainability goals.
The structural demand for the residential real estate market remains strong. We expect the customer sentiment towards real estate, and growth indicators to remain strong over the coming year.”
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Sriram Iyer, CEO, TVS Emerald Realty, said, “The Union Budget FY’24 presented a positive overview and focused on inclusive sustainable development, transport infrastructure to enhance last mile connectivity, ease of doing business and overall welfare of the masses. The increased income tax rebate from 5 lakhs to 7 lakhs will boost disposable income and drive consumer demand for homes.
Affordable Housing has emerged as a key growth driver in India’s real estate industry over the past few years. The increase in budget allocation to Rs. 79,000 Crore for the Pradhan Mantri Awas Yojana will not only boost housing supply but will also stimulate demand among first-time homebuyer and revive demand in the segment while creating more jobs.
We welcome the Union Budget’s focus on mitigating climate risks via focus on Green development. This will positively impact our country’s Sustainable Development Goals through energy-efficient buildings and construction methods.
Overall, we believe these initiatives will stand testament to the country’s commitment to inclusive and long-term growth.”
