 "Sitharaman, Union Budget, Nirmala sitharaman")
The real estate sector echoed a sentiment of cautious optimism while reacting to the interim Budget presented by Union Finance Minister Nirmala Sitharaman in the Lok Sabha on Thursday.
A M Karthik, senior vice-president and co-group head at ICRA Ltd, emphasised the positive impact of the Budget on affordable housing demand.
Karthik predicted a surge in demand for affordable housing units following the Centre's announcement of an additional two crore housing units under the PMAY (Grameen) and a proposed housing scheme for the middle class.
Noting the potential benefits for housing finance companies, he anticipated a boost in credit flow to these segments.
"While liquidity at this juncture looks tight, a lower GOI borrowing programme in the next fiscal could temper the funding cost increase of these lenders," he said.
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Samantak Das, chief economist and head of research and REIS, India, JLL, noted the absence of major announcements but highlighted the government's focus on fiscal prudence and continued support for growth initiatives.
He emphasised the positive implications of infrastructure development, housing schemes, and tourism-related initiatives for the real estate and allied sectors.
Das underscored the significance of measures aimed at promoting innovation and attracting investments, which are expected to further stimulate economic growth.
Sushil Mohta, president of CREDAI West Bengal and chairman of Merlin Group, welcomed the interim Budget.
He highlighted the significance of the Rs 1 lakh-crore fund for research in sunrise industries, seeing it as a boost for India's international standing in R&D.
Mohta praised innovative measures like rooftop solar power installations and the allocation for capex expenditure.
He also appreciated the introduction of schemes for the middle class to buy and build houses under PM Awaas Yojana.
However, he expressed disappointment over the lack of further tax benefits, suggesting that it might hinder investment in homes. He hoped for more focus on the eastern region in future announcements.
Shishir Baijal, chairman and managing director of Knight Frank India, commended the government's unwavering commitment to long-term social and infrastructure development.
He underscored the significance of the 11.1 per cent increase in infrastructure outlay, particularly noting its potential to bolster economic hubs and catalyse growth in tier-2 and tier-3 cities.
Baijal also emphasised the importance of initiatives such as the PM Gati Shakti programme and the ambitious goal of completing two crore housing units in the next five years, which aligns with the 'Housing for All' mission.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
