What Does The Union Budget 2022 Mean For Real Estate In India?
New Delhi (India), February 10: Budget 2022, announced on 1st February 2022, focused significantly on urbanization and sustainability. The driving factor for reforms in the budget, as per Nirmala Sitharaman, the Finance Minister of India, was the idea of creating a blueprint of India’s economy for the Amrit Kaal.
Speaking about the true impact of the Union Budget 2022-23, Clicbrics CEO, Rohit Malik says, “Indian budget is once again focused on the affordable housing segment. This segment is the driver for housing demand in India and it’s aimed at first time home buyers. The Indian Government focus is “Housing for all” for the Indian consumer. The affordable housing sector contributed to nearly 40% of new launches pre covid, and we believe pent up demand from first time home buyers will take it back to around 30-40%. Covid had hurt home sales in 2020-21 but with affordability at a multi-decade high, we believe we will be in the best real estate market going forward not seen since 2003.”
To elaborate on the most crucial amendment missing from the budget, Malik added, “There was no relief provided to consumers who are stuck in delayed projects which the consumers were hoping for. To enable the Indian Consumer to make an an intelligent decision to buy their first home, Clicbrics provides intelligence on details like last transacted prices, whether approved by RERA or not, absorption of units since launch and timelines on construction and respective milestones.
Proptech startups like Clicbrics are at the forefront of providing affordable housing to the Indian consumer, with data and intelligence, a first in India, so that the consumer gets what they pay for, at a fair and transparent price. The focus is on digitizing Indian real estate for the consumer, where property transactions and land records with price transparency do not exist and there is no unified MLS (Multiple Listing Service) in India.
Clicbrics is at the forefront of “One Nation, One Registration Software”, and we believe we will fundamentally change the behavior of the Indian home buyer and seller so that they can make intelligent decisions before buying or selling their home in the most transparent manner possible.”
Union Budget 2022 Initiatives in the Real Estate Sector
The following provisions were announced for the real estate sector under Budget 2022-23.
- In a move to facilitate the Pradhan Mantri Awas Yojana (PMAY), the Finance Minister announced that INR 48,000 Crore will be allocated to the construction of 80 Lakh residential units across the country.
- In her announcement, Sitharaman pointed out that efficient use of land resources was critical. She added that the government will urge all the states to adopt Unique Land Parcel Identification Number for IT-based record management.
The focus on affordable housing will be the driver for the real estate sector in India for the next decade. Real estate contribution to India’s GDP is expected to grow from $200 Bn a year to $500 Bn by 2025. This contributes to around 12-15% of India’s GDP and will be largest employer in India. As the Indian consumer population goes more online every year and more transactions move online, we believe proptech’s/online real estate startups like Clicbrics will play a huge role in contributing to this growth in real estate.