On Feb 1, the Finance Minister, Nirmala Sitharaman present her fourth budget to the nation. The real estate sector welcomed the government’s decision of allocating Rs.48,000 crore for affordable housing under Pradhan Mantri Awas Yojana (PMAY) in the Budget 2022 session. However, homebuyers showed unhappiness over the absence of Income Tax deduction on home loan interest in the presented budget.
This budget session has laid an enormous amount of Rs.48,000 crore under PMAY for the construction of 80 lakhs of affordable housing. There was no instance where incentives for homebuyers in the lower and middle-class groups were announced in the budget session.
The central government has opined to focus on affordable housing for the residents of the country by completing 80 lakhs homes this year under PMAY. This initiative will boost the affordable housing segment in the country. Till now, the PMAY scheme has delivered an outstanding 53.42 lakhs homes till date. The finance minister, on the budget day, said that the Central government will work with the state government for reduction time required to complete all land and construction approvals and promote the benefits of owning affordable homes for middle and lower-income sections of people.
The Budget 2022 also proposed new legislation to replace (Special Economic Zone) SEZ Act with the legislation for the development of enterprises and hubs. Marketers and researchers are of opinion that this significant change will boost commercial real estate and will enable realtors to induce institutional capital flow in the asset class. Additionally, the budget 2022 also focused on providing better infrastructure status to data centres which will ultimately accelerate the evolving digital ecosystem in India.
The central government, on its budget day proposed of digitization of land records for the homebuyers. It has proposed one nation-one registration structural reform for the residents to facilitate the digitized management of records and sale deed registration done from anywhere in the country.
