Mumbai (Maharashtra) [India], February 2 (ANI/PRNewswire): The proposed Union Budget 2023-24 largely focuses on green growth, urban infrastructure, and technology. Contrary to the expectations, there were no direct announcements for the real estate sector. However, the government continued to focus on the affordable housing segment by increasing the capital outlay. The commercial real estate sector would also be benefitted by the incentives provided for start-ups, fintech companies and enhancing ease of doing business. The budget has brought in parity in terms of taxation on all kinds of income for REIT/InvITs unitholders. Income received by REIT/InvITs unitholders in the form of 'repayment of debt' to be taxed from April 2024, which was earlier a pass through. "The Union Budget 2023 has emphasized the need to accelerate economic growth, create new job opportunities, and build resilient infrastructure. Even though there was little for the real estate sector, especially our demand to increase the tax incentives on Principle and Interest rate Amounts on Home loans. However, the Government's aim to boost and accelerate infrastructure development will eventually reflect in the growth and stability of the real estate sector," said Boman Irani, President, CREDAI-MCHI. "Overall, the budget focuses on driving consumption and capital investment to support growth. This will have a multiplier effect on various sectors such as real estate. At the same time, the government's commitment towards affordable housing continues with a significant jump in PMAY allocation. On the commercial front, the continuous push to startups will give a fillip to activity in commercial office space. Further, the budget has brought in parity in taxation of incomes for REIT/InvIT unitholders by bringing in 'repayment of debt' under the tax bracket," said Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development | Asia, Colliers. RESIDENTIAL PMAY outlay increased by 66% to INR79,000 crore The allocation for Pradhan Mantri Awas Yojana has been increased by 66% to about INR79,000 crore. The increase in outlay will bridge the gap between demand and stock in affordable housing. The budget also provides more disposable income in the hands of homebuyers, which would help prospective buyers in the affordable and mid segment. Increased investments will provide opportunities for construction companies and contractors. On the other hand, reducing the surcharge rate from 37% to 25% in the new tax regime is likely to give some thrust to the luxury segment housing. OFFICE Innovation in India to rise high through the colossal uplift provided to start-ups in Budget 2023-24 The budget has announced certain start-up centric incentives such as extension of the date of incorporation of income tax benefits for another year. This can lead to strengthening and deepening of the start-up ecosystem and will translate into higher demand for commercial office space. Further, setting up 100 labs for developing applications using 5G services will open a range of opportunities in the technology sector. INDUSTRIAL Government extends subsidies for EVs till 2024 Government has announced multiple incentives for battery production in the country. 4000 MWH battery storage capacities will be supported with viability gap funding. Further, there would extension of the custom duty exemptions import of capital goods and machinery required to manufacture lithium-ion cells. Such incentives would give a thrust to the EV ecosystem and spur investments. POLICY INCENTIVES The government has reduced more than 39,000 compliances and decriminalized more than 3,400 legal provisions for enhancing the ease of doing business. A Unified Filing Process is also planned to ease out the information submission process in different government agencies. These provisions will help to set up new businesses in lesser time and lower approval-related costs for businesses. The Government has taken strong initiatives to fuel the growth of sustainability measures in the Budget 2023-24. Further, INR35,000 crore is allocated towards net- zero commitment and energy transition. The government also announces to add Green Credit Programme in the Environment Protection Act to incentivize companies and local bodies who help in mobilizing sustainable actions. INFRASTRUCTURE Budget continues to focus on infrastructure development The capital outlay for infrastructure was announced to be at INR10 lakh crore, at 3.3% of GDP. This is expected to have a multiplier effect across sectors and set a strong footing for a resilient growth. Measures and steps taken to make municipal and state finances more viable, would give them more elbowroom to incur expenditure and make them financially healthy in the long term. Further, a dedicated amount of INR 10,000 crore per annum has been allocated through urban infra development fund for tier II and tier III cities. This will result in creation of quality urban infrastructure thereby improving quality of life. This will also translate into higher demand for housing and commercial real estate. CREDAI-MCHI is an apex body consisting of members from the Real Estate Industry from the Mumbai Metropolitan Region [MMR) with a strong membership of over 1750+ leading developers in MMR. CREDAI-MCHI has expanded across MMR, having its Units in Thane, Kalyan-Dombivli, Mira-Bhayandar, Vasai-Virar, Raigad, Navi Mumbai, Palghar, Boisar, Bhiwandi, Uran-Dronagiri, Shahapur-Murbad, Alibag. Karjat-Khalapur-Khopoli and Pen. Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.6 billion and $92 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn. Media Contact: Sukanya Dasgupta Senior Director & Head, Marketing & Communications| Colliers India Sukanya.dasgupta@colliers.com +91 9811867682 Riddhi Vira Manager, Marketing and Communications | Colliers India riddhi.vira@colliers.com +91 9619776362 This story is provided by PRNewswire. ANI will not be responsible in any way for the content of this article. (ANI/PRNewswire)