The Union Budget 2025-26 has garnered a positive response from India’s real estate sector, with industry leaders hailing it as a progressive and growth-oriented budget. The budget’s focus on infrastructure development, urban transformation, and tax exemptions is expected to boost housing demand, drive economic growth, and enhance urban development. In this article, Industry experts and stakeholders from areas like commercial real estates, building equipment, ceramics share their exclusive opinions on Union-Budget 2025-26 with Tejaswini Paranjape.
Lalitย Parihar, Managing Director, Aaiji Group, said, “The Union Budget emphasizes economic expansion, infrastructure growth, MSMEs, and middle-class welfare, offering substantial relief to taxpayers. Raising the exemption limit will boost disposable income, enhancing housing affordability and driving real estate demand. Increased infrastructure spending and the Rs. 1 lakh crore Urban Challenge Fund will transform cities into growth hubs, fostering redevelopment and strengthening water and sanitation systems. These measures aim to stimulate domestic consumption, address the economic slowdown, and create a business-friendly environment. Overall, the budget takes a decisive step toward urban transformation and sustainable economic growth.”
Shivdutt Das, Managing Director, Vishwa Samudra Holdings, said,ย “The Union Budget’s emphasis on infrastructure development, sustainable energy, and urban planning is a significant step towards India’s growth and self-reliance. The increased allocation for maritime development, urban development and UDAN will give a much-needed boost to our industry, enabling us to create more jobs, drive economic growth, and build a stronger, more resilient India for future generations.”
Deep Vadodaria, CEO, Nila Spaces reiterated the importance of 1 lakh crore Urban Challenge fund. The budget initiatives ensure financial security in India according to him. He said,ย โThe Union Budget 2025 presents a strong focus on urban development and real estate growth. The 1 Lakh crore Urban Challenge Fund and the SWAMIH Fund 2 with Rs 15,000 crore will help address infrastructure gaps and provide relief to lakhs of homebuyers. The modified Udaan scheme, expanding to 120 new destinations, will boost connectivity and drive real estate sales by encouraging migration to new areas. A notable point, with the income tax exemption for earnings up to Rs 12 lakhs will also help the working class save more, potentially enabling them to invest in their dream homes. Overall, the budget takes significant steps toward a more connected and financially secure India.โ
Rakshit Hargave, CEO, Birla Opus Paintsย said,ย “The 2025 Budget announced by the Government of India is a bold and visionary step towards a more prosperous and inclusive Bharat. The focus on infrastructure development, domestic consumption, and production, as well as digital transformation, is commendable. Its emphasis on the manufacturing sector, through measures designed to further enhance ease of doing business, will benefit multiple stakeholders. The enhanced National Manufacturing Mission will not only boost domestic production but also position India as a global manufacturing hub. This is also a significant step towards Atmanirbhar Bharat, helping us create numerous job opportunities and setting the stage for a vibrant and competitive manufacturing sector in India. The budget also offers significant tax relief through rebates, which is anticipated to boost domestic consumption and invigorate the retail sector. This increased disposable income should allow consumers to spend more and improve their quality of life. Another key decision by the Govt. is the increased focus on Public-Private Partnerships in infrastructure development as well as the Special Window for Affordable and Mid-Income Housing (SWAMIH) and the decision to develop the top 50 tourist destinations, aiming to bridge the gap between rural and urban, providing improved facilities and connectivity to all citizens. I am confident that this budget will pave the way for a brighter future for India.”
Ashish Puravankara, Managing Director, Puravankara Limited, said, “The Union Budget 2025-26 is a strong and progressive one for the real estate sector, driving economic growth and urban transformation. The rationalisation of income tax slabs, raising the exemption limit to โน12 lakh, revision of tax structure up to Rs. 24 lakhs, and increasing rental TDS thresholds will boost disposable income. The tax exemption on notional rent for a second self-occupied home is a significant relief, encouraging investment in real estate. Coupled with a higher standard deduction, these measures will drive housing demand, particularly in the affordable and mid-segment categories. We welcome the โน1 lakh crore Urban Challenge Fund, which will spur housing and private sector participation. The โน15,000 crore SWAMIH Fund-2 will help complete 40,000 stalled units, boosting consumer confidence. Expanding UDANโs connectivity to 120 destinations will drive Tier-2 market growth. With policy continuity and economic expansion, this budget reinforces real estate as a key pillar of India’s $5 trillion economy journey.”
Rakesh Reddy, Director, Aparna Constructions, however, expresses a few gaps which still remain to be addressed in the budget 2025. He strongly recommends the ‘industry status’ to real estate, streamlined approval processes and liquidity support for developers. He said,”FY26 budget underscores the governmentโs commitment to infrastructure-led growth, with a strong emphasis on urban transformation and public-private partnerships. Financial impetus like the โน1 lakh crore Urban Challenge Fund and the โน1.5 lakh crore interest-free loan to states for infrastructure development will transform urban landscapes and boost real estate demand. Interestingly, the budget also brings in some relief for mid-income and affordable home buyers through the SWAMIH Fund. The much anticipated tax reforms for the mid income groups will further increase spending potential and drive home buying in the country.ย While these measures are welcome, several key industry expectations for the real estate sector remain unaddressed. Granting industry status to real estate, streamlining approval processes, and enhancing liquidity support for developers were essential priorities which would have gone a long way in accelerating real estate growth. Additionally, rationalization of GST on under-construction properties, reduction in long-term capital gains tax on real estate investments, and increased tax benefits for homebuyers would have significantly improved affordability and investment sentiment. We remain optimistic that the government will continue engaging with the sector to introduce necessary reforms that will foster sustainable growth, enhance housing accessibility, and drive India closer to its โHousing for Allโ vision.โ
Sunny Bijlani, Joint Managing Director, Supreme Universal, said,ย “Union Budget 2025, Finance Minister Nirmala Sitharaman announced a significant change regarding self-occupied properties. Taxpayers are now allowed to claim the annual value of two self-occupied properties as nil, effectively exempting them from paying tax on notional rental income for both properties. Previously, only one self-occupied property could be claimed as tax-exempt, while additional properties were subject to tax based on deemed rental income, even if they were not rented out.ย This amendment provides substantial tax relief to homeowners with multiple properties and encourages homeownership by reducing the financial burden associated with owning more than one home. It reflects a more progressive approach in accommodating the diverse needs of property owners.ย Also, the real estate sector is set for significant growth, driven by the government’s unwavering commitment to infrastructure development. With 50,000 dwelling units already completed under the SWAMI scheme and another 40,000 in progress, housing demand is rising. The โน15,000 crore SWAMI Fund 2 will provide essential financial support to stalled projects, ensuring timely completion and strengthening market stability.ย ย Backing this momentum, Budget 2024 allocated โน11.11 lakh crore for capital expenditure, maintaining the same level as the interim budget, accounting for 3.4% of GDP. The revised capex of โน11.21 lakh crore further reinforces the governmentโs focus on infrastructure, fueling economic growth and creating a strong foundation for real estate expansion.ย ย Increased investments in urban mobility, utilities, and connectivity will enhance residential and commercial developments, making cities more livable and business-friendly. These strategic reforms and higher infrastructure spending will unlock new investment opportunities, propelling long-term growth and reinforcing Indiaโs vision for sustainable urban expansion.
Overall, the Union Budget 2025-26 has been well-received by the real estate sector, with industry leaders praising its progressive and growth-oriented measures. While some leaders have expressed concerns about unaddressed issues, such as granting industry status to real estate, the budget’s focus on infrastructure development, urban transformation, and tax exemptions is expected to drive growth and development in the sector. As India continues on its path to becoming a $5 trillion economy, the real estate sector is poised to play a key role in driving economic growth and urban transformation.
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