PropertyAngel | Property Management Bangalore, Bengaluru
  • Property Owners
  • Tenants
  • Refer a Friend
  • Propathon
  • Careers
  • Contact Us
  • Property Owners
  • Tenants
  • Refer a Friend
  • Propathon
  • Careers
  • Contact Us

Real Estate sector at ease with Budget 2023?

13/2/2023

0 Comments

 
The real estate industry had been eagerly awaiting the release of the Union Budget 2023. On the 1st of February, Finance minister Nirmala Sitharaman announced the Budget for the year.  Out of the many announcements the income tax relief is foreseen to help boost the real estate industry. Satish Magar, chairman of CREDAI National, said, "With the announcement of increased income tax limits and lower income tax rates, the middle class will have more disposable income."

In addition, Savills, an international real estate company, stated post-budget that India's real estate sector will benefit in the long run due to the budget outlay placing greater focus on infrastructure development.

So, without further ado, let's look at some of the highlights of the Budget 2023-24 that are likely to impact real estate:
Picture

1. Increased outlay for Pradhan Mantri Aawas Yojna (PMAY).

According to Sudhir Pai, CEO of Magicbricks, the decision to increase the outlay for PMAY by 66% to over Rs 79,000 crore in Budget 2023 is a blessing for affordable housing. This decision provides the much-needed momentum towards the vision of "Housing for all". Also, by increasing infrastructure spending by 33%, the government is promoting economic growth through job creation and investment, both of which directly and indirectly has an impact on the real-estate sector. Residential demand in cities such as Bhubaneswar (12%), Coimbatore (27%), Jaipur (5%), and Nagpur (66%), among others, increased in 2022, and this initiative will boost the livability index and appeal of these cities even further. Overall, the Union Budget is positive and growth-oriented for the real-estate sector.

2. Implementation of multiple programs for green buildings and housing

Finance Minister Nirmala Sitharaman listed 'Green growth' as one of the top seven priorities in the Budget. Sitharaman said we are implementing many programmes for green buildings, green equipment, and policies for efficient use of energy across various economic sectors.

The policies in the Budget prove the government's commitment to sustainable development. These are aimed at using energy optimization across different sectors of the economy, reducing the carbon footprint, and creating ample green job opportunities. These initiatives are set to change how we live, work, and grow.

3. Urbanisation and infrastructure development

The Rs 10,000 crore investment in urban infrastructure development is expected to boost economic activity. Real estate is likely to grow as the local economy improves. The tier II and tier III cities collaborating with developers and funds have been proposed to increase commercial, residential, and retail development. Municipalities will also be supported in raising funds, which may have an impact on real estate.

4. Changes in the New Tax Regime

In the new tax regime of Budget 23-24, the increase in tax rebate slab from income amount  Rs 5 lakh to Rs 7 lakh may encourage investment in the affordable segment.

According to Sajjan Jindal, chairman of ISW Group, increasing the income tax rebate limit by 40% from income range 5 lakh to 7 lakh will increase the purchasing power of the middle-income group, leading to more spending.


Sanjiv Bajaj, President of CII, said the attempt to rationalise personal income tax rates is going to go a long way towards increasing disposable incomes.

5. Limiting the deductions from capital gains to 10 crore under Sections 54 and 54F

On February 1, 2023, Sitharaman proposed limiting deductions from capital gains on investment in residential properties under Sec 54 and 54F to 10 crore. Since ultra-luxury homes are especially located in the metro and tier-1 cities, the proposal is likely to have an impact on the market for such properties.    

According to Atul Goyal, CFO of Brigade Enterprises, capping the capital gains benefit for housing property at a maximum of 10 crore will have a negative impact on demand for ultra-luxury homes because capital gains above 10 crore will be taxable.

Anuj Puri, Chairman of Anarock Property Consultants, said the proposal to cap seems negative for HNIs as previously there was no such cap. So, if one sells a house and the gains are more than 10 crore, the maximum benefit when investing in another property is up to 10 crore.

Puri, however, stated that it wouldn't directly impact primary luxury housing sales, but it may impact the resale luxury market.

Final Words

With all these announcements being made during the Budget 2023, the real estate industry is set to soar high. The economy will focus more on infrastructure, providing better employment prospects for the youth. Here's to a more robust, developed, and growth in India.

About PropertyAngel

PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
0 Comments



Leave a Reply.

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    August 2020
    July 2020
    June 2020
    May 2020
    December 2018
    March 2018
    November 2017
    October 2017
    September 2017
    August 2017
    October 2016
    July 2016
    December 2015
    July 2015
    June 2015
    March 2015
    November 2014
    July 2014
    May 2014
    September 2013
    May 2013

    Categories

    All
    Covid
    Mumbai
    Property Management
    Video Blog

    RSS Feed

 (c) 2023 PropertyAngel. All rights reserved. 
 Privacy Policy   ​
PropertyAngel is a leading property management company, headquartered in Bangalore. It is the most trusted property management company, that provides personalized tech-enabled services. 
CALL US: 91-7406484455 (also on whatsapp)
BANGALORE HEADQUARTERS:
PropertyAngel Management Pvt Ltd
570/571 16th A Main road,
Koramangala 3rd block,
Bangalore - 560034
India
www.propertyangel.in

Open Hours:
  • Monday-Saturday: 9:30am IST - 7:30pm IST
  • Sundays: 10:30am IST - 6:30pm IST

Useful links

  • The property Management Blog
  • How the Property Management Process works
  • How much do property managers charge every month? 
  • ​7 things to consider while selecting the Best Property Management Company
  • What does a Property Manager do?
  • Recommended format for Property Management Agreements
  • PropertyAngel Referral Benefits
  • How do I choose a good Property Manager? 
  • NRI property management services 
  • Zoho Case Study on Property Management & PropertyAngel award
  • Build a career in Property Management 
  • Rent a property managed by a property management firm. ​