A silver lining for the real estate sector of India with the Union Budget 2022 – 23!. Read the below article to understand more about the Union Budget 2022-23 recommendations for the real estate sector and its impact.
The announcements of the Union Budget 2022 – 23 are optimistic and promising for the sector of infrastructure development and affordable housing. Plagued by the pandemic, the real estate sector has been hard hit with reduced sales, project delays, reduced site visits, and so on. The Budget 2022 – 23 announcements have provided significant momentum to the affordable housing sector and have lessened the anti-dumping duty on steel.
We like to provide you the detail information regarding Union budget recommendations and Union budget 2022-23 impact on Real Estate.
Union Budget 2022-23: Recommendations Concerning Real Estate Sector
One of the major aims of the Budget Announcements 2022-23 was to provide relief to the affordable housing sector and the subsidiary industries such as cooperative societies and steel.
Below mentioned are some of the few budget announcements which will have a direct impact on the real estate sector of India.
- Budget Impact: Construction and Steel Industry
The Finance Minister has revoked the Countervailing Duty and the Anti Dumping duty on coated steels, bars of alloy steel, stainless, and high-speed steel in the Union Budget 2022-23 announcements. Various sectors such as Steel, Iron, Cement, and other allied materials are integral to the real state sector and hence such a decision would be a huge relief to the real estate sector. Such a decision will be crucial in reducing Chinese imports and the promotion of domestic manufacturing. Construction and allied industries that utilize steel and steel products extensively in housing construction can reap the best out of this decision.
- Housing Development: Budget Recommendations
In the budget announcements, there is a recommendation for the allocation of Rs 48,000 crore for the stalled projects under the affordable housing schemes in the guardianship of leading builders across the country. Such a recommendation can enable the timely delivery of under-construction projects. The Finance Minister has also recommended the construction and delivery of over 80 lakh affordable houses by the year 2023. Increased focus on the affordable housing sector can play an important part in the revival of the real estate sector and its allied industries.
- Land Records Management under NGDRS
For better land records management, the Finance Minister has encouraged the adoption of the ‘Unique Land Parcel Identification Number’(ULPIN) in the Union Budget 2022-23 recommendations. The adoption of ULPIN can facilitate the IT-based management of land records smoothly. Another recommendation is the transliteration of land records across all languages mentioned in the Schedule VII of the constitution.
Union Budget’s vision to adopt seamless linkages with ‘National Generic Documents Registration System (NGDRS)’ to promote digital record management will be greatly helpful in ensuring ‘One Nation-One Registration Software’ and the facilitation of a uniform process of ‘Anywhere Registration’ of Deeds and documents.
- Urban Development – Budget focus
The Government has strong intentions to support and work with the states for urban capacity buildings and to bring a paradigm shift in ‘Urban Planning’. The need to develop Mega Cities and to increase focus on Tier 2 cities and Tier 3 cities have been highlighted by the Union budget 2022-23 impact on Real Estate. The plan is to developed the cities into economic powerhouses soon. The Government has also announced a constitution of a high-powered committee for making suggestions on capacity building and policy matters related to urban infrastructure development. The Finance Minister also has raised the opinion that Urban Planning requires a more comprehensive approach.
- Infrastructure Development: Budget Recommendations
The Union Government has increased its focus on infrastructure development in the Union Budget 2022 – 23. The National Highways is set for expansion by 25,000 km during the next year under PM Gati Shakti and the Government also intends to implement the National Ropeway Programme in Public-Private Partnership (PPP) to improve connectivity. The seven engines under PM Gati Shakti viz Airport, Ports, Mass Transport, Roads, Railways, Waterways, and logistic Infrastructure are highlighted. The infrastructure and construction industry across the country will receive a major boost to the quality projects with the development of 100 cargo terminals.
- Cooperative societies – Impact of Budget
The Union budget 2022-23 impact on Real Estate tends to reduce the Alternative Minimum Tax from 18.5 percent to 15 percent to reduce the burden on Cooperative societies. For having income from Rs 1 crore to Rs 10 crore, the surcharge has been reduced to 7 percent.