Many people were unsurprised by the Union Budget 2022. Routine steps were taken to digitise rural areas, with a greater emphasis on healthcare and education. However, the budget 2022 also emphasised openness in the real estate market as well as affordable housing for everybody.
Despite high expectations for reforms to the income tax slab, no reforms were made. The RBI’s launch of the digital rupee using blockchain technology in 2022-23 was a major highlight. The following are some of the key points we believe were the budget’s highlights. Let’s take a look at what effective actions are being implemented in the real estate industry.
Housing and urban Development
The allotment of Rs 48,000 crores for the PM Awas Yojana was big news in real estate.
This will certainly help the real estate sector with around 80 lakh houses to be completed under PM Awas Yojana in rural and urban areas. This will significantly increase the affordability of residential real estate.
Rural and urban regions were also covered by these funding allocations. In 2022-23, 80 lakh families would be identified for the affordable housing project.
The Projects that have previously participated in the building of these affordable housing projects may also benefit. Aside from that, 60,000 crores have been set aside to provide 3.8 crore families with access to running water.
While presenting the Union Budget 2022-23, Finance Minister Nirmala Sitharaman announced the government’s decision to organise a high-level committee of urban planners and institutes to develop policies for sustainable urban development. The Finance Minister also stated that tier 2 and tier 3 cities would need to pick up their development efforts.
These steps would assist the government in resolving urbanisation issues such as wasting of productive land and environmental dangers by concentrating on urban development through the creation of an urban sector committee,” said Jaxay Shah, Chairman of ASSOCHAM’s Western Region.
Some of the industry’s requests included lowering the GST on under-construction houses, lowering the GST on critical raw materials, increasing the interest exemption for homeowners, and awarding the sector ‘infra’ status. Last but not least, an extra allocation of 19,500 crores for manufacturing solar modules speaks good for real estate,” stated Atul Goel, MD, Goel Ganga Group & President of Goel Ganga Group (Elect.)
NGDRS Land Records Management
The Union Finance Minister indicated in her recommendations for the Union Budget 2022-23 that states would be urged to use the “Unique Land Parcel Identification Number” for improved land record administration (ULPIN). It will enable the management of land records to be smoother and IT-based.
It was also indicated in the Union Budget 2022-23 suggestions that the government will try to transliterate land records into all of the languages listed in Schedule VII of the constitution.
The Union Budget proposes establishing seamless links with the ‘National Generic Documents Registration System (NGDRS)’ in order to improve digital land record administration. This will permit a ‘One Nation-One Registration Software’ and a standard method of ‘Anywhere Registration’ of Deeds and papers.
Overview
Due to the Coronavirus-induced problems, India’s real estate business has suffered from a slowdown in property sales, fewer site visits, and project delays during the previous few years. Conclusively, the Union Budget 2022-23 intends to increase the supply of affordable housing and boost the nation’s multimodal infrastructure.