👍👍Budget 2023 will benefit real estate sector in the long term: Experts – BusinessToday

Clipped from: https://www.businesstoday.in/personal-finance/real-estate/story/budget-2023-will-benefit-real-estate-sector-in-the-long-term-experts-368652-2023-02-02

International real estate experts Savills in their post-budget has defined that the real estate sector of India will benefit in the long term as more stress has been laid on infrastructure development in the budget outlay.

The real estate sector is likely to get peripheral benefits from the BudgetThe real estate sector is likely to get peripheral benefits from the Budget

Budget 2023-24’s infrastructure push would help grow the real estate sector in the long term. International real estate experts Savills explains that even as there were limited announcements for the sector, there are likely to be indirect benefits. Key highlights:

Addition of 50 airports, helipads
The budget outlay of Rs 3,100 crore for regional air connectivity to build 50 additional airports, helipads, water aero drones and advanced landing fields will lead to the development of new locations. This could lead to an appreciation in land prices around the proposed sites and increase real estate potential.

Smart Cities mission
The measure to construct ‘sustainable cities of tomorrow’ and the increased allocation of Rs16,000 crore could transform multiple cities in India by enhancing their quality of life, seamless infrastructure and mobility, and urban sustainability. This would ultimately lead to the enhancement of the real estate potential of such cities in the long term. 

Urbananisation and infrastructure development
The outlay of Rs 10,000 crore for urban infrastructure development is expected to boost economic activity. As the local economy strengthens, real estate is expected to witness growth. The proposition of tier II and tier III cities with developers and funds creating more commercial, residential, and retail development. Municipal bodies are also to be supported in raising funds – these could have a cumulative impact on real estate.

Capital gains in property deals
Capital gains benefit in property deals capped at Rs 10 crore.  This can help sanitise real estate investments further where large investments from businesses are invested in real estate. While the size of transactions is likely to be significantly large, it might impact a very small segment of top-end residential deals.

Spending prudence
An increase in tax rebate slab from Rs 5 lakh to Rs 7 lakh in the new tax regime could push investments in the affordable segment.

GIFT city 
Data embassies to be set up with single window approval and registration system Data embassies are likely to attract countries looking for digital continuity solutions. The single window system is a stepping-stone in making GIFT City one of the landmark global financial hubs in the country. IFSCA is likely to be empowered with powers to avoid dual registration. This is likely to ultimately impact the real estate sector.

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