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“There were few citations during the Union Budget announcement which provide indirect stimulus for all the key real estate asset classes – commercial, residential and warehousing. The New SEZ Act will be significant booster for the commercial real estate and can be seen as an enabler for inducing institutional capital flow in the asset class. Announcement of Gati Shakti framework that will focus on the development of multimodal logistic parks and cargo terminals can be noted as great initiative for the warehousing sector. The focus of transit oriented infrastructure development will definitely pave way for more employment hubs thereby, unlocking the residential and commercial build up potential in the key micro markets of a city.
Alongside this, announcement of capping the surcharge on the long term capital gains at 15 per cent is a sign of encouragement for real estate sector as it will make transactions quicker and also empanel our honorable Prime Minister’s vision of Housing For All in an effective way. Outlining a new reform of one land and one registration system will prove beneficial to the real estate sector. Although there has been a booster for the affordable housing by providing a package of 48,000 crore, a standard definition of 60m and 90m affordable home would have given a bigger boost to the entire housing industry which indirectly supports 260+ industries across India. The core focus on digitalization will make the role of data centres even more prominent.”
“The budget certainly has impacted the overall sentiment positively. The premium luxury market has been performing well especially in urban areas. The 1 lakh crore assist to states is likely to help states improve overall infrastructure. Proposal for modernization of building bylaws and town planning schemes too will help in improving the urban infrastructure. The ease of doing business proposition is a promising proposition. Forward looking announcements like digital rupee will aid the positive sentiment further. We expect demand to rise for premium units with the announcement on capping on long term capital gains tax at 15%.”