As the nation awaits the Union Budget 2025, stakeholders from the architecture and interior design industry are eager to see policies that will boost growth, sustainability and innovation. Industry leaders are seeking supportive measures to overcome challenges and capitalize on opportunities. Tejaswini Paranjape compiles the pre-budget expectations of the key spokespersons, highlighting their concerns and recommendations for the government’s fiscal roadmap.
Commercial real estate industry leaders have prominently shared their concrete recommendations for the upcoming budget. Nila Spaces is one of leading real estate companies which believes in creating projects with innovative technology. Deep Vadodaria, CEO, Nila Spaces Limited says, “As the Union Budget 2025-26 approaches, I have high expectations for the real estate sector under the Modi 3.0 government. With real estate activity declining in late 2024, targeted interventions are essential to revive consumption and stimulate growth. Beyond incentives, subsidies, and tax reliefs, I hope the budget emphasizes infrastructure development and sustainable real estate practices, such as green buildings and energy-efficient construction. Affordable housing remains a critical focus, and there is an urgent need to reignite the momentum seen during Modi 1.0’s Pradhan Mantri Awas Yojana (PMAY). Measures like reintroducing the Credit-Linked Subsidy Scheme under PMAY and restoring the 100% tax holiday for developers under Section 80-IBA could help address challenges in this segment and boost supply and demand.With the right policy steps, 2025 could mark a recovery for real estate, driving growth, new launches and optimism in the sector.
Dikshu Kukreja is the Honorary Consul General of Albania to India and Managing Principal of C.P. Kukreja Architects, a global design firm. He has led iconic projects in education, healthcare, and infrastructure, impacting millions of lives. A visiting faculty at SPA Delhi, Kukreja has lectured at architecture schools worldwide and contributed to over 1,000 projects. He says, “One of the key objectives of urban development plans must be to address air pollution. To address this issue, large investments are necessary; after all, what does a Viksit Bharat look like if its citizens are compelled to breathe poisonous air all the time? The problem of waste management is equally urgent, since cities are becoming more and more like enormous landfills. In order to revitalize metropolitan areas and protect public health, adequate and targeted investment is essential.
Additionally, the PMAY program can reimagine urban housing by prioritizing green infrastructure, mixed-use complexes, and intentional densification. By giving priority to these factors in the upcoming budget, urban communities may become more vibrant, inclusive, and sustainable, meeting housing demands and improving people’s quality of life.
Policies promoting green shipping, energy-efficient technologies, and renewable energy adoption are essential for fostering sustainability. Financial incentives for digitalization and the integration of advanced technologies such as AI, IoT, and Blockchain will accelerate the modernization of the sector, ensuring resilience and global competitiveness.”
Rakesh Reddy, Director, Aparna Constructions, said, “The 2025-26 Union Budget holds the potential to be transformative for the real estate sector, fostering growth, sustainability, and inclusivity in India’s housing market.
Strong policy support is crucial to drive demand and improve overall affordability in the real estate sector. Key priorities for the sector include gaining infrastructure status, streamlining approval processes, enhancing funding access, and rationalizing GST. Additionally, policies should focus on increasing tax benefits for housing loans, reducing long-term capital gains tax on real estate investments, and expanding the scope of affordable housing initiatives.
One of our key expectations is an expansion of the affordable housing segment through increased price caps and enhanced tax benefits for homebuyers. Such measures will further boost demand and support the government’s vision of ‘Housing for All.’ Simplifying the GST structure on under-construction properties and providing clarity on Input Tax Credit policies can greatly improve cost efficiency for developers while making housing more affordable for buyers.
Infrastructure investment in Tier 2 and Tier 3 cities should remain a top priority. Increased allocation for urban infrastructure development will not only facilitate better living standards but also attract private investments to unlock the potential of emerging real estate markets.
We also urge the government to introduce financial incentives for adopting green and sustainable building practices. Tax rebates or grants for projects that prioritize renewable energy, water conservation, and energy efficiency would align the real estate sector with India’s commitment to climate goals.
Lastly, we seek policies that improve liquidity for developers, such as single-window clearance mechanisms and access to low-cost financing for housing projects. These steps will streamline operations and enable faster project delivery.”
Pankaj Sharma, Managing Director ,K2 Infragen, says, “To achieve the vision of a $7 trillion economy by 2030, the upcoming Union Budget must prioritize infrastructure development while maintaining fiscal discipline.
Key initiatives like the National Infrastructure Pipeline (NIP) and PM Gati-Shakti National Master Plan should lead the agenda, with increased investments in railways, highways, power transmission, water, and urban infrastructure. Affordable housing and the Jal Jeevan Mission (JJM) also require focused attention to sustain growth.
Boosting public-private partnerships (PPP) will be crucial. Enhanced viability gap funding (VGF) and supportive policies can drive projects in ports, airports, and renewable energy. Expanding asset monetization programs is equally vital to attract private investments and fast-track infrastructure creation.
Simplified tax structures with lower rates for infrastructure projects, including green energy, and favorable regimes for carbon credits and offshore wind projects, can provide the sector with a significant boost.
This budget offers a critical opportunity to strengthen India’s infrastructure story. By focusing on strategic investments and practical reforms, we can drive economic recovery and lay the groundwork for sustainable and inclusive growth in the years ahead.”
Abhishek Somany, Managing Director and CEO, SOMANY Ceramics on talks about reducing GST on tiles and bathware . Reflecting in this expectations from the budge for the current fiscal, he says, “Natural gas stands as one of the most critical input costs in tile manufacturing. However, despite extensive deliberations across various industry platforms, it continues to remain outside the purview of GST. This exclusion creates a significant cascading effect, diminishing the industry’s competitiveness on a global scale.
In parallel, the housing sector has gained prominence, driven by the Government of India’s “Housing for All” initiative. Tiles and bathware, essential components across residential and commercial construction, are currently taxed at 18% GST. Reducing this rate to 12% would enhance affordability, aligning with the broader goal of making housing more accessible to all.”
Nien Siao, Dean, JS Institute of Design gives her recommendations for investments in design education sector. She said, “As India strives to solidify its position as a global innovation hub, we emphasize the need for stronger investments in design education to fuel innovation across industries. The growing demand for skilled design professionals in areas like product, user experience, and digital design calls for increased focus on specialized educational programs that nurture creativity, critical thinking, and technical expertise. We urge the government to allocate resources for research in innovation, in experiential products and services, and focus on application of technology for human centred design for regional zones of India. The other area we would wish for to spread out across all states, centres of expertise and implementation support for enhancing education, faculty training, mentoring and incubation to set up Design services and manufacturing startups. Policies supporting the collaboration between educational institutions and the design industry can bridge the talent gap and equip students with the practical knowledge needed for today’s fast-evolving market. By investing in a design ecosystem, India can progress to the competitive global stage, ensuring long-term economic growth and innovation.”
Aditya Kushwaha, CEO and Director, Axis Ecorp, one of India’s fastest-growing real estate companies focused on premium developments in holiday homes, secondary housing, club & resorts, serviced villas, and suites, especially recommended tax relief for the home-buyers to boost the investments in this sector. He said, “Last year, the real estate sector witnessed strong growth driven by rising urbanization and increasing demand across affordable, mid-income, and luxury segments. We are hoping that the upcoming budget will prioritise tax relief for homebuyers and streamline regulations. Additionally, introducing tax benefits for those investing in REITs focused on premium commercial or residential assets would encourage more investments and boost the sector. We are also hoping that the government will continue to invest in infrastructure projects. These measures will help the housing sector remain a key contributor to economic progress. Granting industry status to the real estate sector has been a long-standing demand, and we remain hopeful it will finally be addressed this year. Such a move has the potential to significantly stimulate growth, benefiting numerous ancillary industries, driving job creation, enhancing skill development, and amplifying overall economic activity .”
Tushar Verma, Executive Vice President, REHAU India shares his views on the growth of the Indian Furniture industry. When asked about his pre- budget expectations, he said, “As the Indian furniture industry continues to grow at a rapid pace, we expect the Union Budget 2025 to address key challenges hindering its potential. Reduction in import duties, incentives for domestic production, and sustainability initiatives are crucial to enhance competitiveness and reduce environmental impact. Export promotion measures and skill development programs will also be vital in tapping into global markets and upskilling our workforce. With targeted interventions, India’s furniture sector can become a leading global manufacturing hub, contributing significantly to the country’s economic growth.”
Amrita Gupta, Director, Manglam Group and Founder President of CREDAI Rajasthan Women’s Wing says, “Property prices and construction costs have consistently increased over the years. In this scenario, increasing the tax exemption limit to Rs 5 lakh aligns perfectly with the evolving needs of homebuyers and the market. It will help ensure housing remains accessible and attractive for buyers. This could provide the kind of relief homebuyers need to make owning a home a little more within reach. Another important change that we are looking forward to is the GST input tax credit. Right now, the tax burden on developers is high, and a small adjustment could help ease that pressure. If developers feel less of a strain, it could mean more affordable properties in the market. These steps could make a difference in making housing more accessible for everyone,” Amrita Gupta, Director of Manglam Group and Founder President of CREDAI Rajasthan Women’s Wing.”
Mohit Goel, Managing Director, Omaxe Ltd, India’s leading real estate brand encourages infrastructure development in Tier2 and Tier32 cities reducing the pressure on metro cities. He reflects, “The real estate sector stands at a pivotal juncture, and the 2025 budget must provide the impetus to make housing accessible and sustainable for growth. We are hoping that the government will take measures to help the sector in unlocking its true potential. The government should prioritise fiscal incentives for affordable and mid-segment housing, including tax benefits for developers and buyers and enhanced funding under PMAY. This would not only help the sector maintain its current momentum but also help meet the demand for quality homes. Lower interest rates would make home loans more affordable, encouraging more people to buy homes. Income tax relief would also be beneficial, increasing disposable income and supporting greater spending on real estate. Additionally, infrastructure development in Tier 2 and Tier 3 cities is critical to fostering balanced growth and easing the pressure on metro cities. Finally, reducing excise duty on fuel would help reduce construction costs, which would, in turn, keep housing prices stable. We hope the upcoming budget will address these needs, creating a more sustainable path for the sector’s growth.”
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