Union finance minister Nirmala Sitharaman’s infra and low-cost housing push has ensured that Budget 2022 has delivered on most expectations from the real estate sector. In her approximately 92-minute-long Budget speech, the FM announced that 18 lakh homes would be completed in FY23 under the PM Awas Yojna.

Sitharaman also announced a 35.4 percent increase in infra capex outlay over last year, taking the total sum to nearly Rs 7.5 lakh crore, before announcing ambitious plans to enhance urban planning and capacity-building across several mega-cities.

"Nearly 18 lakh houses will be completed for beneficiaries of PM Awas Yojna,” announced Sitharaman, "A total of Rs 48,000 crore would be allotted for this purpose."

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She added that the central government was committed to help cutting the red tape involved in building low-cost homes under the scheme: "The central government will work with state governments for reduction of time required for approvals to promote affordable housing for the middle-class and economically weaker sections in urban areas."

In keeping with infrastructure announcements, Sitharaman announced that a high-level committee of urban planners will be tasked with enhancing urban planning. Further, five existing academic institutions, the FM said, would be designated as centres of excellence in urban planning with an endowment fund of Rs 250 crore each.

Emphasizing the need for Indian "mega cities" to transform into centres of economic growth, Sitharaman said tier-2 and tier-3 cities would also have to step up in terms of development. "Urban planning cannot continue like it is business as usual," she added, "A high-level committee of urban planners will make recommendations of urban policy, capacity building, planning and governance."

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In keeping with the emphasis on enhanced urban planning, the FM also hinted at modernization of bylaws governing urban planning and central government support for mass-transit projects across cities.

"The union budget has demonstrated the government's strong commitment towards systematic urban growth with a focus on clean tech, sustainable urban living and better governance," said Siddharth Maurya, Resource Specialist, Real Estate and Fund Management.

"The government is expected to build the right balance between large megacities as well as tier-2 and tier-3 cities, while it focuses on creating mass transit systems and encourage EVs, which will help in reducing overall carbon footprint," he added.

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"The government's aim to create 6 million new jobs over the next five years will also enable the growth of residential real estate across the country," said Anuj Puri, chairman, Anarock Group. "The FM has clearly emphasized the top priorities for the government, and the union budget is progressive especially with its emphasis on building infrastructure for the country."

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(Edited by : Jomy Jos Pullokaran)

First Published:Feb 1, 2022 1:34 PM IST