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.”
Image Courtesy: pawangoel.in
