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The real estate sector reacted cautiously to the Union Budget 2023. Here are the excerpts from a cross section of industry stalwarts

Harsh Vardhan Patodia, President, CREDAI National

“Through the Union budget 23 – 24, the Government continues to focus on the empowerment of youth, women, OBCs & farmers. With a keen focus on the future of the country with a growth-oriented budget, we applaud the FM’s vision of enabling an inclusive and sustainable development growth chart for infrastructure. An increased capital outlay for a third year in a row to INR 10 Lakh crores amounting to 3.3% of the GDP, a hike of 66% to over 79,000 crores for PM Awas Yojana and the 9000 Cr Credit Guarantee Scheme for MSMEs, will have a positive multiplier effect on economic growth and help realize the PM’s vision for ‘Housing for All’.”

Rajan Bandelkar, President, NAREDCO said “Government’s decision to increase the allocation to the flagship Pradhan Mantri Awas Yojana (PMAY) by 66% to a record level of Rs 79,000 crore will give a much needed boost to demand in the affordable housing segment. The focus on infrastructure and the decision to set up an Urban Infrastructure Development Fund would also accelerate the housing sector in tier 2 and tier 3 cities. The relaxation on the taxation front for the middle class and the tax exemption up to the annual income of Rs 7 lakh and other incentives would put in more money in the hands of the common man, thereby allowing them more scope to realize their dreams of having their own homes. The sector, however would require relief in taxation in terms of housing and boost is required for boosting purchase of more of one property, which would go a long way in achieving the goal of “Housing For All”. “

Manoj Gaur President CREDAI NCR

“We applaud the FM’s vision of enabling an inclusive and sustainable development growth chart for infrastructure. An increased capital outlay for a third year in a row to INR 10 Lakh crores amounting to 3.3% of the GDP, a hike of 66% to over 79,000 crores for PM Awas Yojana and the 9000 Cr Credit Guarantee Scheme for MSMEs, will have a positive multiplier effect on economic growth and help realize the PM’s vision for ‘Housing for All’. Continuing its focus on urban planning reforms to develop sustainable cities for tomorrow, the allocation of INR 10,000 crores to the NHB for infrastructure development, the highest ever railway outlay at Rs 2.4 lakh crore and increased regional connectivity through 50 more additional airports, helipads, water aero drones, advanced landing grounds will also boost affordable regional connectivity and will add impetus for infrastructure development, especially in tier-2 and 3 cities which will help the Indian economy to remain less impacted by a global slowdown.”

Deepak Kapoor, Director, Gulshan Group

The increased spending on infrastructure, while on the one hand, increasing prosperity, will also boost economic prospects, which will encourage both the housing and commercial realty segments. Further, an increase of 66% to a record Rs 79,000 crore in allocation for the PM Awas Yojana Fund, a jump of 33% to Rs 10 lakh crore in capital investment outlay, and the desire of the government to make available Rs 10,000 crore p.a. for urban infra development fund, as announced by the Finance Minister in her budget speech are also expected to aid the growth the real estate development. A rebate in the income tax rates will indirectly boost the real estate sector.

Ashish Bhutani, CEO, Bhutani Group

“The Union Budget 2023 has rightly emphasised on boosting the healthy consumer demand in the realty sector apart from enhancing the ease of doing business. The honourable finance minister has also showcased her keen inclination towards urban infrastructure development in tier-II-III cities with the announcement of the fund of Rs 10000 crore per annum for this purpose. Such an encouraging move will further drive real estate growth all across the country.”

Navin M Raheja, Chairman and Managing Director Raheja Developers


Coupled with a 66% hike in the PM Awas Yojana Fund and increased infrastructure spending, this will boost the development of the housing and commercial realty segments. Besides, the budget also nudges the states and cities to take up urban planning, and we expect this to lead to planned real estate development in the country. It will also improve living standards in cities and provide developers with an opportunity to provide better home

Ashwani Kumar, Pyramid Infratech

The expansion of PM Awas Yojana Funds by 66% to 79,000 crores will prove to be a successive step in accomplishing the government’s mission to achieve Housing For All. This will replenish the affordable housing demand across the country and fulfill the homebuying aspirations of medium-class buyers. The emphasis on infrastructural boost, road and airport connectivity, sound urban planning, and raising the capital expenditure to expedite the completion of 100 critical infrastructural projects will bring forth a boom in the real estate sector and lead to a optimistic rise in residential housing demand.

Harpal Singh Chawla, Director Spaze Group

In order to achieve the government’s third economic agenda of ‘Infrastructure and Investment’, the Finance Minister, in her speech, eloquently announced that the capital expenditure will be increased by 33% to bolster the infrastructure apparatus and urban town planning of the country. This will invariably sate the demands of the residential and commercial real estate sector. The allocation of Rs 10,000 crores to urban infra fund development will also bring a flux to the realty sector, pushing the demand rate upwards. The 66% rise in the PMAY funds to 79,000 crores bodes well for the affordable housing sector and will lead to a resurgence in its absorption rates.

Ankit Kansal, Founder & Managing Director, 360 Realtors

In the budget session, GOI has shown its commitment to systematically dismantling structural bottlenecks, fueling infrastructure growth, and working on the fundamentals. The INR 10,000 Crore urban infrastructure fund is a welcome step, as this will help Tier 2 and 3 cities and bridge their gap with larger metros in India. This will also fuel demand for commercial and residential real estate in such parts of the country.  The government has also increased capital expenditure to INR 10 lakh crores, almost three times than compared to 2019. Increased investments towards urbanization, power, water supplies, construction activities, etc. will naturally invigorate realty demand by catalyzing economic growth and urban development.

Rajesh K Saraf, MD, Axiom Landbase

The fiscal policies adopted by the government with regard to improvement in urban infrastructure and connectivity are a pro-development dispensation. The Finance Minister outlined that the capital expenditure will be surged by 33% to upgrade the infrastructural quality and boost job markets and employment opportunities. This will also act as a stimulus for private players to enter the scene and encourage public-private partnerships. The policy corpus will also lead to a staggering increase in real estate demand and opportunities. A sound approach towards making urban infrastructural connectivity robust through the allocation of Rs 10,000 crores to modernise towns and cities serves as a fitting decision to boost the housing and commercial RE sector.

Narayan Bhadana, MD, 4S Developers


Even though there has been no big-ticket announcement for the real sector in the country but certain announcements by the finance minister, such as income tax rebates, a jump of 33% to Rs 10 lakh crore in capital investment outlay, focus on states and cities to take up urban planning, and thrust on infrastructural development will boost economic growth and prosperity and will have a multiplier effect on the real estate development.

Kushagr Ansal, Director, Ansal Housing

A significant infrastructure push by the Government will broaden the scope of real estate development across the nation. The announcements regarding the focus on MSMEs, startups, and other efforts will help boost the economy and launching the rebuilding process. The real estate sector will indirectly benefit from the focus on infrastructure and job creation. The best takeaway for real estate was the remark on ease of doing business, projected to streamline business procedures and government clearances.

L C Mittal, Director, Motia Group

The demand for real estate will rise as the government announced new tax regime and tax rebate. Also, the tier II-III cities will see increased demand and supply as the Government pushes for their economic development. In the Budget, the FM said that the States and cities will be encouraged to work towards sustainable cities for tomorrow that will create additional real estate growth potential.

Prateek Mittal, Executive Director Sushma Group

This budget will boost realty prospects in tier 2 cities as it allocates Rs 10 lakh crore in capital investment outlay and intends to set up an urban infra development fund with an annual allocation of Rs 10,000 crore. Together, these two steps will lead to a massive creation of infrastructure – road, rail, metro and airports immensely benefitting the tier 2 cities. Further, a net reduction of 20-25% in income tax rates will also increase disposable income, and some of it will be invested in real estate. 

Uddhav Poddar, MD, Bhumika Group

The budget has announced a record 66% increase in allocation of Rs 79,000 crores under PM Awas Yojana. Also, this budget takes a holistic view & Various initiatives, such as the infrastructure development fund of Rs 10,000 crores, will benefit the tier-2 cities by encouraging housing and commercial development in the country. Simultaneously, rebates in income tax, thrust to railways and incentives for start-ups, will all have a multiplier effect and will promote economic growth, which in turn will boost real estate development in the country.

Amit Modi, Director, County Group, President CREDAI (WUP)


More than 39,000 compliances reduced to enhance ease of doing business and over 3400 legal provision decriminalised is the biggest take away for in this years budget, while we await the fine print, we hope that it also includes compliances related to Real Estate industry for ease of doing business.

Yash Miglani, MD, Migusn Group

The Budget 2023-24 allocated Rs 79,000 crore for the Pradhan Mantri Awas Yojana (PMAY), giving a further boost to the government’s programme to provide housing,more than 55% of the estimated gap in funding for projects under the scheme is addressed which directly leads to the growth in the real estate industry.This will help in timely construction of urban and rural houses.The extension of CLSS will give the homebuyers the financial elbow room to make a purchase but a standard definition for 60m and 90m affordable homes would have given a bigger boost to the housing industry.

Amit Jain, Director, Mahagun Group

The Prime Minister Awas Yojana Fund has always been always the nub of the Union Budget, and this year as well, the Finance Minister announced an increase in PMAY Fund to 79,000 crores which is a considerable large fund expansion by 66% from Rs 48,000 crores allocated last year. The government has pressed the development of affordable housing and, through successive budgets, has also provided an impetus to affordable residentials through groundwork applications and policy announcements. The government has also pivoted the growth of infrastructural development by enlarging the funds allocated in the capital expenditure Budget. The funds allocated this year is Rs 10 lakh crore. The startling fact is that it is commensurate to 3.3% of the GDP. The government is adopting a multi-pronged strategy to bolster infrastructural seamlessness, connectivity, job opportunities, and socio-economic reforms to bring holistic development metrics and parameters across the country, through public-private partnerships.

Harvinder Sikka, MD, Sikka Group

With the Indian economy expanding to become the fifth largest in the world, the Union budget has included significant real estate investments. The announcement of expanding the PM Awas Yojana Fund by 66% to Rs 79,000 crores benefits both developers and buyers. Multiple factors for the overall growth of the real estate sector have been revealed in the Union budget, including a 33% increase in capital investment outlay to Rs 10 lakh crore, as declared by the Finance Minister in her address, and the government’s ambition to make available Rs 10,000 crore p.a. for the urban infra development fund. The country’s per capita income has steadily increased, significantly benefiting the real estate sector. The declaration of income tax exemption for incomes up to 7 lakhs would also help real estate because it will provide relief to middle-class buyers.

Parveen Jain, Chairman, NAREDCO

‘For the progression of the Real estate sector, emphasis has been laid on Sustainable cities, Urban planning Reforms, TOD (Transit Oriented development), Affordability, Urban infrastructure, Incentivised schemes, Urban infra fund for cities, special emphasis on more development of Tier-II & Tier-III cities, dry & wet waste management, transformation of Man holes to machine mode holes & Green Growth.

Reduction in Income Taxes will indirectly lead to more savings and more investments and buying in Housing and Real estate sector. All the above factors shall lead to more job creation, more investment & buying, progression for the Real estate sector.’


Dharmesh Shah, CEO, Hero Realty Pvt. Ltd

The 2023-24 Budget makes a concerted effort to create the groundwork for the India blueprint in the time of Amrit Kaal. It is exciting to see infrastructure development and green growth among the budget’s seven priorities, as both are critical to the future of our real estate sector. Expanded income tax rebate limits will provide buyers with more spare income to spend in their ideal homes, while increased infrastructure and capital investments will play a significant role in urbanisation and employment growth.

Dhruv Agarwala, Group CEO,, & 

“Overall, the FM presented an inclusive, growth oriented and fiscally prudent budget. Rationalisation of income tax, especially at the lower end of the income spectrum, would provide extra funds in the hands of middle-class families and alleviate the burden of increasing interest rates. It may also encourage those on the fence to purchase a home, which is the most trusted asset class for Indians. The demand for housing is already very robust, and the Budget 2023-24 would further galvanise growth for India’s real estate sector”.

Dr. Niranjan Hiranandani, Vice Chairperson, NAREDCO 

 “India has prudently maneuvered global and economical storms. It has aptly addressed the economic growth of India by augmenting the capital expenditure outlays in infrastructure upto Rs 10lac crores accounting to nearly 3.3% of GDP. This will have a multiplier effect on real estate asset classes like the residential, commercial, Industrial and Logistics sector. Rebates in personal tax will permit additional disposable income in the hands of the discerning homebuyers to be invested back in a safe asset ‘home’. The capital gain tax benefit on the sale of property above the value of Rs 10crores is sought to be withdrawn. families are liable to pay capital gain tax which will disincentivize families to buy multiple properties as a security provision for their children. Emphasis on skilling to foster research and knowledge-based economy will garner a job ready workforce for the highly labor-intensive real estate sector.”

Amit Goyal, CEO, India Sotheby’s International Realty
Rationalization of tax slabs and enhancement of tax rebate is going to benefit the middle class which will boost domestic consumption and should aid in keeping demand for homes strong. Overall, the budget has addressed all concerns that are needed to keep India as the fastest-growing economy of the world.
However, the proposed cap on deduction from capital gains on investment in residential houses under sections 54 and 54F to Rs 10 crore can be a big deterrent for the housing industry. We sincerely appeal to the government to reconsider this limit.

Pradeep Aggarwal, Founder & Chairman, Signature Global 

This year’s budget touched upon the most critical issue for the revival and growth of the affordable housing segment. PMAY’s budgetary allocation increased by 66%, which is good news for affordable housing. The new allocation of Rs 79000 crores in the budget 2022-23 will help countless Indians realise their home aspirations. Also, the increased allocation will lead to more housing projects being taken up, in both rural and urban areas. The scheme will provide a much-needed boost to the housing sector and continue to assist those from the EWS and LIG sections of society in owning a home.

Varun Gupta, Whole-time director, Ashiana Housing Ltd.


The Union Budget 2023 has given impetus to the real estate sector by announcing many important initiatives and programmes that are anticipated to help the sector. The Union Budget 2023 contains a number of significant announcements that are either directly or indirectly relevant to the real estate and infrastructure industries.

States and cities will also be urged to implement urban planning changes and initiatives to make their cities “sustainable cities of tomorrow.” This entails the effective use of land resources, sufficient funding for urban infrastructure, transit-oriented development, improved access to and affordability of urban land, and equal opportunity.

Dr. Nitesh Kumar MD & CEO Emami Realty 

“Budget 2023-24 appears highly balanced, with growth being given precedence. There is a boost for the affordable housing segment with the increased allocation of 66% to over INR 79,000 crores for PM Awaas Yojana. Infrastructure construction is a primary focus of the Budget, particularly last-mile connectivity. Tier 2 and 3 cities will benefit from improved urban infrastructure and it will indirectly drive real estate growth. In addition to the redesigned credit guarantee for MSMEs, special tax benefits and deductions will encourage overall industrial development, and this will impact the real estate market as a whole.”

Anurag Mathur, CEO, Savills India 

“The 2023 Union Budget is a testament to the government’s commitment to inclusive growth, with a focus on strengthening the country’s infrastructure, empowering the rural sector, and driving innovation for a better tomorrow. Although the real estate sector did not feature prominently in the budget, derived benefits are likely to give further boost to the sector especially in these times of a ‘Robust Growth Phase’ post the pandemic affected years of 2020 and 2021.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE

“This year’s budget scores well on many fronts including its focus on developing infrastructure, meeting green goals, providing tax relief to the middle class and boosting the MSME sector. Measures such as an increased outlay for affordable housing, enhanced focus on tourism and development of unity malls in key cities across the country would give a fillip to the real estate sector, which will be further aided by the tax relief to citizens which should boost consumption appetite. Moreover, the sustained attention on manufacturing and improvement of urban infrastructure is likely to boost the I&L sector and at the same time spur economic activity and job creation.”

Avneesh Sood, Director, Eros Group 

“The allocation of Rs 79,000 crore in the Budget 2023-24 for the Pradhan Mantri Awas Yojana (PMAY) is a significant step towards fulfilling the government’s commitment to provide affordable housing to the urban poor. The 66 percent increase in funding for PMAY, compared to the previous budget, will provide a much-needed boost to the program and contribute to the growth and development of the country. Also, the extension of the Credit Linked Subsidy Scheme (CLSS) will give homebuyers the financial flexibility to make their purchase, thereby helping to achieve the government’s goal of completing 80 lakh houses under PMAY. The hike in funding for PM Awas Yojana is a positive development in the affordable housing market and an important step towards creating a more inclusive society.”

Rohit Gera, Managing Director, Gera Developments. 


“The government has continued the approach of taking a long-term view of the economy.  The fiscal deficit being maintained as per the budget estimates and the downward trend thereof is reassuring. The rationalization in tax slabs under the new tax regime is welcome.  Leaving the old tax slabs untouched clearly reinforces the governments statement of making the new tax structure the default structure.  Steps being taken to increase digitalization as well as ease of doing business are also very welcome. The PMAY scheme has been instrumental in making homes available and affordable for the masses. The increase in allocation of a massive 66% will go a long way towards realizing the dream of their own home for many Indian families” 

Arvind Subramanian, MD & CEO, Mahindra Lifespaces

“This year’s budget highlights the importance of infrastructure development, urban planning, affordable housing, domestic manufacturing, ease of doing business, and energy transition with a focus on sustainability.

The increased allocation of Rs 79,000 Crores towards Pradhan Mantri Awas Yojana (PMAY), is expected to provide the supply-side stimulus that will not only aid real estate developers but will also boost end-user demand for affordable homes. Moreover, the revision in income tax slabs and rates will provide more disposable income, further accelerating the demand for homes. As the pioneers of green buildings and sustainable construction in the country, we are particularly pleased to see the government’s commitment to transitioning to green energy and reducing emissions. By taking this important step towards sustainable development, India is further up on its path to meeting its commitment to Net Zero developments.”