Budget 2022 and the real estate sector: All you need to know

Several promising proposals involving real estate and urban planning were put forth by Finance Minister Nirmala Sitharaman in the recent Union Budget, and these have served to invigorate the real estate industry. Here’s a look at the proposals targeting these sectors.

• The ‘Har Ghar, Nal Se Jal’ scheme that aims to supply running water to every household has a coverage of 8.7 crore households, including 5.5 crore added in the last two years. Another 3.8 crore households are planned to be covered in 2022-23 and Rs 60,000 crore has been allocated in the budget for this purpose.

Also Read: Union Budget 2022: Key Highlights

• The budget allocates Rs 48,000 crore towards the PM Awas Yojana for 2022-23. During this year, 80 lakh houses are planned to be built under the Housing for All scheme for identified beneficiaries in both rural and urban regions.
• To promote affordable housing among the middle class and economically weaker class in urban locations, the budget stressed the importance of faster land and construction-related approvals. Accordingly, the central government will work with state governments to reduce the time required for these approvals. The government will also work with financial sector regulators to increase access to capital and reduce the cost of intermediaries in the real estate sector.
• The FM pointed out that 25 years from now, nearly half of the Indian population will be urban residents. She highlighted the need to prepare our cities and adjoining areas to become centres of economic growth. Orderly urban development is key to the realisation of the country’s economic potential and increasing livelihood opportunities. Alongside, Tier 2 and Tier 3 towns would be nurtured to transform into future urban centres with sustainable living and opportunities.

Also Read: Union Budget 2022: Schemes Announced By The FM

• The budget has also proposed a paradigm shift in the approach to urban planning. A high-level committee will be set up to make recommendations on urban sector policies, capacity building, planning, implementation, and governance. This committee will comprise urban planners, urban economists, and institutions.
• To facilitate efficient urban planning and capacity building in the states, the budget proposes to provide adequate support. The focus will be on town planning and transit-oriented development to facilitate living and working near mass transit systems. Modernisation of building by-laws is also proposed. The central government will offer financial support for mass transit projects and the AMRUT scheme.
• Due to the importance given to urban planning, the subject is also highlighted in the budget from an academic perspective. Five academic institutions across India will be designated as centres of excellence and allotted an endowment fund of Rs 250 crore each. The syllabus, quality, and access to urban planning courses will be improved, with the All India Council for Technical Education (AICTE) spearheading the initiative.

Also Read: Union Budget 2022: A Look At What's Expensive And What's Cheaper

• The budget also highlighted the need for efficient use of land resources. States will be advised to maintain an IT-based record and data management by adopting a Unique Land Parcel Identification Number (ULPIN). Transliteration of land records into any of the languages under the Eighth Schedule will also be facilitated to make land record management more streamlined and user-friendly.
• One Nation One Registration software will be put to use to ensure adoption or linkage with the National Generic Document Registration System (NGDRS). This is expected to set a uniform process for registration and facilitate ‘anywhere registration’ of deeds and documents.

The long-term vision for urban planning outlined in Budget 2022 will undoubtedly see many more initiatives in the years to come. Affordable housing and land record reforms, on the other hand, can be expected to have a more immediate impact.