NEW DELHI: Real estate developers in West Bengal on Sunday welcomed the Union Budget’s focus on infrastructure-led growth but expressed disappointment over the absence of targeted measures for affordable housing, warning that the segment could shrink further amid rising costs.
According to industry bodies, the higher public capital expenditure of Rs 12.2 lakh crore on highways, metro rail, logistics corridors, and urban infrastructure would enhance connectivity and unlock new growth corridors in the eastern region, particularly in Tier-2 and Tier-3 cities.
“Investments in highways, Metros, railways and urban infrastructure will enhance connectivity and support long-term urban development, especially in Tier-2 and Tier-3 cities. Faster approvals, simplified processes and digitisation would help reduce project timelines and holding costs,” CREDAI West Bengal president Sushil Mohta told PTI.
Mohta, however, flagged the continued neglect of affordable housing as a “serious concern” for the sector.
“The long-pending demand to revise outdated price and area caps has again been ignored. With rising land and construction costs, affordable housing risks shrinking from nearly 18% to about 12% of total supply. A sustained decline in supply could push up rentals, increase commuting distances and fuel informal housing in urban areas,” he said.
He also noted the absence of relief on GST rationalisation, input tax credit, or income tax benefits on home loans, while industry status for real estate remains unaddressed.
Ambuja Neotia Group chairman Harshavardhan Neotia welcomed the government’s infrastructure push, saying the Budget reinforced the Centre’s commitment to urban transformation.
“The 8.9% increase in capital expenditure to Rs 12.2 lakh crore will sustain momentum in large-scale development and create opportunities across the construction and real estate value chain. Measures such as dedicated REITs for CPSE asset monetisation and the Infrastructure Risk Guarantee Fund would help de-risk capital deployment and attract institutional investors,” he stated.
Neotia added that the allocation of Rs 5,000 crore per City Economic Region (CER) and the continued focus on Tier-2 and Tier-3 cities represent the next growth frontier, particularly significant for eastern India.
Jain Group MD Rishi Jain said the focus on infrastructure, REITs, and InVITs would help unlock capital and support long-term housing growth, boosting confidence among developers and homebuyers.
REITs allow investments in large-scale, income-generating real estate such as malls or offices, giving investors a share of the rental income without owning the property. InVITs operate like mutual funds for infrastructure, enabling investments in projects like highways or power grids to earn a portion of tolls or fees collected. These instruments help small investors participate in large real estate and infrastructure projects.
Finance minister Nirmala Sitharaman’s 85-minute Budget speech marked her ninth consecutive address, making her the longest-serving finance minister. In office since May 2019, she is also the first woman to hold the position full-time
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