Realty Sector Welcomes Maharashtra Government’s Budget Proposals Focusing on Infrastructure Development
Maharashtra is all set to become the first and only state in India so far, to be on the verge of becoming a trillion dollar economy, said the state’s Deputy Chief Minister while presenting the annual budget for 2021-22. With the budget’s major focus on development of infrastructure, healthcare and agriculture, it may soon be a reality.
In the midst of the ongoing economic downturn, the Maharashtra government unveiled the annual budget for 2021-22, which would constitute a substantial step forward for the state’s overall development by mitigating the effects of the pandemic. The Maharashtra government plans to accelerate economic growth and turn the state into a trillion-dollar economy by launching a new five-point development agenda known as the Panchasutri of Development. A budget of Rs 115,215 crore is proposed for five priority areas: agriculture, health, infrastructure, transport, and industry. It has also been promised that Rs 4 lakh crore will be made available for these sectors over the next three years.
Focused Infrastructural Development Across Maharashtra
In order to strengthen the economy, special emphasis is being placed on infrastructure projects, in addition to welfare schemes. Furthermore, special attention has been placed on accelerating the development of infrastructure projects in Mumbai in anticipation of the upcoming BrihanMumbai Municipal Corporation elections in 2022. Connectivity projects such as the Jalna-Nanded Expressway Connector, the Mumbai-Pune Expressway development, the Marine Highway development, and the planning for the Pune Ring Route will be beneficial to the growth of major cities and their real estate markets.
The Jalna-Nanded Expressway Connector is 44% complete, and a 500-kilometre stretch from Nagpur to Shirdi will open for traffic on Maharashtra Day, May 1, 2021. The Yashwantrao Chavan Expressway (Mumbai-Pune Expressway) is currently under construction, with two and a half kilometres of underpasses and two two-kilometre-long bridges expected to be completed by December 2022.
Following the completion of the planned Marine Highway from Raigad to Sindhudurg, real estate development along the route will boom. This route is said to be a viable substitute for the Mumbai-Goa Highway. A Ring Road has been proposed to divert external traffic from Pune in order to alleviate the constant burden on Pune traffic caused by the continuous transport of goods and travellers via Pune to other parts of Maharashtra. This will relieve the strain on Pune while also reducing congestion, implying greater potential for real estate investment.
The Right Step Towards Economic Recovery
After several years in the down cycle, the housing market in the last 1-2 years has charted a recovery on the back of end users even as investor interest continued to remain low. Maharashtra seeks to expand at a 12.1 percent annual rate in fiscal year 22-23, and a sufficient emphasis has been placed on infrastructure development, with an allocation of Rs 28,000 crore for transportation infrastructure. Infrastructure spending, particularly in and around urban areas, would encourage development and increase the demand for affordable housing.
There is also a separate fund allocation to augment slums outside of Mumbai, which will help many neighboring areas progress their living conditions. The Budget also aims to incentivize the construction industry, thanks to such encouraging steps like the extension of the time period for stamp duty set-off from one year to three years will provide greater flexibility to investors participating in the asset class.
Realty Sector Welcomes The Budget & Its Provisions
With such an extensive budget allocation for the infrastructural growth, the development sector will see a great influx of prospective interested parties – of the ones who would create more investment opportunities, and those who would make investments – causing a great benefit to the overall real estate market.
Here’s hoping that the trajectory of the revival mode on which the state government is right now, remains in the right direction, and we continue to see an upward trend in the realty industry, as it will be one of the major contributors towards the US$1 trillion economy that the Maharashtra government is set to achieve.