The Finance Minister, Nirmala Sitharaman, presented the fifth Union Budget on February 1, 2023. Real estate has always been a major contributor to India’s GDP. The takeaways related to real estate from the Union Budget 2023 hold significance due to this reason. In fact, in the coming three years, the real estate sector is expected to contribute 13% to India’s GDP. Real estate is one of the sectors in India that has shown constant growth. The financial year 2023 is expected to show a growth of 7% of GDP, continuing the trend. 

The post-pandemic period has been hard on the real estate sector as well. The stakeholders have been eagerly waiting for the Union Budget 2023, hoping it will meet some of their key expectations. Let’s see what Union Budget 2023 had in store for real estate, directly and indirectly, and whether it met the expectations of the realtors. 

1. Prathana Mantri Awas Yojana(PMAY)
   One of the top highlights of Union Budget 2023 is the announcement of Rs. 79,000 crores as a fund for PM Awas Yojana. This is a 66% upsurge in funds compared to the previous year. The increase in funds aims at making the idea of housing for everyone in India come true. These funds will be utilised to promote affordable housing options in India.
2. Urban Planning
   The Union Budget 2023 offers Rs. 10,000 crores for infrastructure funds for development and urban planning in Tier 2 and Tier 3 cities. These funds will be managed by the National Housing Board and will be utilised for sustainable and planned development which, in turn, will help in driving housing demand. 
3. Social Infrastructure
   This year’s union budget has set aside funds for urban development, including the development of smart cities. This also includes funds for the revival of 50 airports and ports. 
4. Tax Exemption
   There will be tax exemptions for those who buy affordable housing options. Similarly, the budget also includes tax exemption for REITs(Real Estate Investment Trusts) from dividend distribution tax to attract more people into real estate investment. On top of that, with the aim of stabilising the real estate market, the budget has proposed to increase the holding period for long-term capital gains on real estate from two to three years.

To sum it up, this year’s Union Budget’s major focus goes on “Housing for all”, and urban infrastructure development. The announcements are expected to help the real estate industry positively. 2023 is looking like a good year for investing in 3 & 4 BHK luxury flats in Bangalore considering the funds allocated for urban development. This increases the chances of higher returns on real estate investments in luxury apartments in Bangalore. Advaitha Aksha is a prestigious project that offers 3 & 4 BHK luxury apartments in Koramangala. It comes with a breathtaking view of 1500 acres of no development of Agara lake, Bellandur lake, and an infinite green zone to make your days at home serene and peaceful. These luxury flats in Koramangala are an ideal option for investment and with the benefits of the Union Budget 2023, now is the best time to make a safe investment in real estate! Check out the Advaitha Ventures website to know more about Advaitha Aksha.