by Suman Gupta
Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
“The budget’s resolute focus on infrastructure will certainly aid the real estate sector growth trajectory. The impetus given to road infrastructure through the new 25,000 km National Highway network will offer new momentum for the sector by opening a new market in tier-2 and tier-3 cities. The allocation of INR 48,000 crore for PMAY Urban and Rural will push the affordable housing segment.
The move to appoint a high-level panel for urban planning and designating the five existing academic institutions as the Centre for Excellence for urban planning with endowment fund of Rs 250 crore will prove pivotal for the real estate sector as both the emerging urban landscape and decaying city infrastructure need a complete overhaul. The emphasis on promoting the use of public transport in urban areas is futuristic, considering the traffic and pollution scenario in all metro cities.
Bringing 1.5 lakh post offices under the core banking system will enable financial inclusion and provide access to accounts through net banking, mobile banking, ATMs to the marginalized section. This will prove significant for farmers and senior citizens in rural areas to invest by enabling interoperability and financial inclusion. Eliminating 75,000 compliances and repealing 1,486 union laws for facilitating ease of doing business environment is a great step to promote young entrepreneurs and start-up ecosystem. In a nutshell, the budget is progressive.
However, the budget missed the opportunity to accord the long pending industry status to the Real Estate sector as a whole; currently the same has been accorded only to affordable housing. This long-pending demand would have helped developers raise funds at lower costs.”