Telangana Budget 2023 to push realty growth across State
In annual Budget for 2023-24, Telangana government has given much priority to infrastructure development and public welfare
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Hyderabad: In annual Budget for 2023-24, Telangana government has given much priority to infrastructure development and public welfare. The real estate experts anticipate this will pave way to the growth of the housing sector in tier-2 and tier-3 cities of the State. However, they were no immediate showering of sops to the sector in the Budget ahead of elections.
The Finance Minister T Harish Rao has introduced a robust Budget with specific allocations to the IT and infrastructure development, apart from several other allocations. It has earmarked Rs 11,372 crore to the Municipal Administration & Urban Development (MA & UD) Department. A part of the Budget will be used for Infrastructure and Traffic Flow in Hyderabad.
To address traffic congestion, the State government has undertaken several SRDP Projects like flyovers, underpasses, foot over bridge and road over bridge. The allocation of Rs 4,037 crore for the industries department will contribute towards creating a conducive business environment to attract investments. The State's efforts have resulted in an increase in transparency and ease of getting permissions.
An amount of Rs 9,599 crores has been allocated for the home department. A part of the allocation will be used towards the Mega City Policy Initiative, effective surveillance by investing on CCTV Cameras and to reinforce the Hyderabad, Cyberabad and Rachakonda Police Commissionerates. The government has also allocated Rs 1,500 crore to the Hyderabad Metro Rail Limited.
Besides Rs 500 crore towards connectivity to the Old City, another Rs 500 crore was allocated for the Proposed Airport Metro. All these allocations in the Budget will lead to a surge in the national and international investments which will lead to several jobs being created in the State that will translate to more demand for the real estate, said B Sunil Chandra Reddy, President, NAREDCO - Telangana Chapter.
The latest budget's major focus is on infra development and social welfare this time. The Rs 2.9 lakh crore inclusive State budget with a high allocation for agriculture and irrigation department indicates the priority of the government towards the development of rural regions in the State. The agriculture and irrigation outlay will help boost the State's agricultural economy and their water requirements.
The State government has allotted Rs 2,500 crore to maintenance of Roads and Buildings (R&B) roads and Rs 2,000 crore for maintenance of Panchayat Raj roads. Around Rs 1,000 crore was set aside towards new recruitments in different government departments. This will lead to the improved connectivity and enhanced agricultural incomes in the rural areas of the State.
“Hyderabad has developed mainly because of its well-connected roads and infrastructure. In the long run, we may see growth in tier-2 and tier-3 cities of the State. The infra development and employment generation increases the financial potential of the people, who may invest their savings in the housing sector,” Ch Ramchandra Reddy, Chairman of CREDAI Telangana chapter.
He said, “Though the announcements in the Budget are positive to the real estate and construction industry, it may take several years to witness the same. Similar to the industrial belt in between Bengaluru and Chennai, more industrial corridors shall come in the State along the National Highways. This will not only help in job creation, but also the development of residential clusters across the State.”
Samson Arthur, Senior Branch Director – Hyderabad, Knight Frank India, said: “The outlay for the municipal and R&B Department will boost infra all over the State. The allocation for double-bedroom houses will benefit over 2.5 lakh eligible persons in the State, thereby giving a boost to the housing sector. The multi-outlay towards railway and metro is one of the key highlights of the budget.”
“The urban infrastructure development will improve connectivity as well as commercial cum social real estate development. The State government has walked the tightrope of not announcing a populist budget despite this being an election year. But the loan waiver scheme of Rs 6,385 crores will certainly put some stress on the finances of the State,” he added.
