Union Budget, 2022: Govt. Allocates Rs. 48,000 Crore For Real Estate Sector (PMAY)

The Union Budget 2022-2023, presented by the FM Nirmala Sitharaman, is a progressive booster shot for the economic growth of India. Especially, for the real estate sector, FM stated, "In 2022-23 80 lakh houses will be completed for the identified eligible beneficiaries of PM AwasYojana, both rural and urban. Rs. 48,000 crore is allocated for this purpose." This move is expected to provide a near-term boom to the sector.

Additionally, Anuj Puri, Chairman - ANAROCK Group told media, "The government's aim to create 6 million new jobs over the next 5 years will enable the growth of residential real estate across the country." He added, "Allocation of Rs. 48,000 Crore for PMAY Urban and Rural will push forward its 'Housing for All' initiative. Under PMAY, the government plans for 8 Mn houses in FY'23."

Commenting on the indirect driver of the real estate sector, Puri stated, "The government's unwavering focus on infrastructure and sustainability will drive real estate growth over the next 1 year. For instance, the National Highway network will be expanded by 25,000 km in 2022-23. PM Gati Shakti will encompass the seven engines for multi-modal connectivity for the states with speedier implementation of development projects through technology to facilitate faster movement of people and goods through Rs. 20,000 crore financed by the government to speed up this project. Further, the 100 PM Gati Shakti Cargo terminals to be developed over next 3 years will provide much impetus to the logistics sector." He added, "Increased focus on tier 2 and tier 3 cities for urban development. A high-level panel to be set up for urban planning. Data Centres given infrastructure status will give an impetus to this segment of the real estate sector."