Union Budget 2022: Realty sector expecting dynamic favourable policy for housing sector, relaxation in taxes

New Delhi: Pankaj Bansal, Director of M3M India, India's leading real estate developer and largest developer of retail space in North India, is confident of speedy revival of real estate sector post Covid slowdown, and is aggressive on FDI inflow in the sector, reported news agency IANS.

"The retail segment has been on the investors' radar as it is providing great investment opportunities to a wider spectrum of small to large investors. As part of NCR, Gurugram seems to be leading the retail sector. M3M India itself is today the largest developer of retail space in North India by delivering over 4 million square feet of retail space in one of the most promising growth areas of Gurugram. Overall, the Company has delivered a staggering 20 million square feet of realty space. The DPIIT report on flow of FDI in construction sector, and interest of institutional investors in real estate is very encouraging. This I believe will make the business more competitive, delivering better value to buyers and investors," Pankaj Bansal told IANS.

The real estate sector is also looking forward to the upcoming Union Budget and expecting few key relaxation in taxes to boost the sector and make it more affordable.

"We are now eagerly awaiting Union Budget and expecting a dynamic favourable policy, for not just retail, but also for the housing sector. As the entire sector is focused to contribute at least 13% in India's GDP by 2025 and reach market size of USD 1 trillion, I am sure the Government must be also looking to present few essential concessions and relaxations in the Union Budget 2022," says Pankaj Bansal.

The real estate is ranked third among the 14 major sectors in terms of direct and indirect or induced impact on all the sectors of the economy.

Pankaj Bansal added, "Market is constantly expanding. There is tremendous growth opportunities for small and mid-level retail investors who are going to make the market more accessible to a wider audience. Even the co-living market in the top 30 cities, primarily metros, is set to grow almost double -- to about USD 14 billion from the current size of USD 6.70 billion. Boost in real estate sector, which is second largest sector in terms of employment generation, only after agriculture, will further create jobs."

Going by recent report by Savills India, the real estate demand for data centres is also increasing -- by 15-18 million square feet by 2025.

Moreover in the Q3 of FY 2021, housing sector stood at 62,800 units, which is an increase by 113% YoY across all the top seven cities, as compared with 29,520 units in the Q3 of 2020. In the seven cities, Mumbai accounted for 33% of total sales and NCR 16%. According to JLL Report, during the month of January -- March 2021 quarter, NOIDA accounted for 55% of the net absorption, followed by Gurugram at 38%. Delhi-NCR has also been witnessing sharp increase in demand for office space.

"The ambitious 100 smart cities project by Government of India is not only going to be a great opportunity for the real estate sector, it will also pave way for many world-class developments in key emerging markets, by capable real estate developers who are exploring 'smart' and new age innovations to bring in new ways of living habitats," says Pankaj Bansal.

The central government has given impetus to the sector by deciding to build 20 million affordable houses in urban areas across the country by the end of FY 2023. This is being done under the PM Narendra Modi's Pradhan Mantri Awas Yojana (PMAY) scheme of the Ministry of Housing and Urban Affairs.

With IANS Inputs