Increased allocation on education will enhance the supply of knowledge pool, which, in turn, will benefit the IT and services sectors as also the manufacturing sectors in India. Thus said, the increased supply of skilled manpower in real estate industry will also impact the dynamics in the form of pulling in more corporate entities to India. In the long run, it will motivate KPO, retail, real estate, and management companies to set their base in India, predicts real estate solutions company Cushman & Wakefield India, as it released its statement on Union Budget 2008-09.
The release further reads that The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has evoked a positive response from state governments as it will help in betterment of infrastructure, while increase in urban infrastructure spending will create new corridors for development because it will enhance connectivity.
On investments in Golden Quadrilateral project, the release says that the completion of this will improve connectivity and boost cargo movement by roads. Moreover, this will lead to improved access to major consumption centres and create opportunities for development of newer growth corridors.
Commenting on the Budget’s proposed subsidy for housing for poor in hilly/difficult areas under Indira Awas Yojana (IAY), Cushman & Wakefield states: Subsidies coupled with lower interest rate will increase demand for housing among lower income groups of the society in the short run. This will change the dynamics of real estate pricing in smaller towns.
The company also sees benefits in the proposed development of corporate bond, exchange traded currency and rate derivate markets, as it envisages that the development of a robust corporate bond market will enhance investments in corporate debt benefiting real estate development groups.