Five Things You Must Do Before Buying a House
Union budget 2022 wasn’t a shocker for many. Routine steps were taken for the digitization of rural areas with an increased focus on healthcare and transportation. Although expectations were high regarding reforms in the income tax slab, no changes were introduced. A major highlight was the launch of the digital rupee using blockchain technology by RBI in 2022-23. Below are a few of the key things we think were the highlights of the budget. Let us take a look at what specific measures are taken in the real estate sector.
Housing & Urban planning
The major news for Real Estate was the allocation of Rs 48,000 crores for PM Awas Yojana.
This will definitely help the real estate sector with around 80 lakh houses to be completed under PM Awas Yojana in rural and urban areas. This will massively increase the affordability in the residential real sector. In these allocations of funds, both rural and urban areas were covered. In 2022-23, 80 lakh households will be identified for the affordable housing scheme. This will also result in housing finance players such as HDFC & CanFin Homes.
Further, PSP Projects have earlier participated in the construction of these affordable housing projects can also benefit. Apart from that 60,000 crores is being allocated for providing access to tap water to 3.8 crore households
The Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2022-23, announced the government’s decision to set up a high-level committee of urban planners and institutes to formulate policies for sustainable urban development. The Finance Minister also mentioned that the tier-2 and tier-3 cities would have to step up in terms of development.
These measures will help the government to resolve urbanization problems such as wastage of productive land and environmental hazards by focusing on urban development through the establishment of a committee on the urban sector,” was the statement made by Jaxay Shah, Chairman, Western Region, ASSOCHAM.
Some of the demands from the sector included relaxation in GST on under-construction properties, a reduction of GST on key raw materials, a higher interest exemption for homebuyers, and granting 'infra' status to the sector. Last but not the least, an additional allocation of ₹19,500 crores for manufacturing solar modules augurs well for real estate," said Atul Goel. MD, Goel Ganga Group & President (Elect.)
With all these changes to the real estate sector, we think this will be a great booster budget for India. Having said that we will have to wait for the coming 1-2 years for fruitful results to kick in.