Mr. Prashant Sharma, President, NAREDCO Maharashtra
“The Union Budget 2025-26 has emphasized economic growth and inclusive development, but the absence of specific measures for the real estate sector is a missed opportunity. While the ₹1 lakh crore Urban Challenge Fund is a step in the right direction to transform cities into growth hubs, the sector was expecting direct incentives such as industry status, single-window clearances, and increased tax benefits for homebuyers.
The increase in the income tax exemption limit to ₹12 lakh per year is a significant relief for the middle class. This will not only improve disposable incomes but also provide a much-needed boost to affordable and mid-income housing projects, encouraging homeownership. Moreover, the rationalization of TDS and the relief provided to the middle class through tax reductions will further boost spending power, indirectly benefiting housing demand.
A notable highlight is the progress under SWAMIH which has completed 50,000 homes in stressed projects and will deliver 40,000 more in 2025, easing financial strain on homebuyers. The ₹15,000 crore SWAMIH Fund 2 will accelerate the completion of another one lakh homes, benefiting middle-class families and boosting market sentiment.
Additionally, the announcement of a new Fund of Funds (FoF) with an expanded scope and fresh contribution of ₹10,000 crore will have a spillover effect on the start-up ecosystem and may drive innovation in PropTech, enhancing technology-driven solutions in real estate and improving efficiency in project execution and homebuying experiences.
However, we urge the government to consider targeted interventions to address liquidity concerns, expedite approvals, and create a more robust framework for real estate investments.”
Mr. Rohan Khatau, Director, CCI Projects
“The increased infrastructure spending and PPP initiatives are welcome moves that will facilitate urban development. However, the real estate sector was expecting much-needed reforms in stamp duty rationalization, higher home loan interest deductions, and incentives for rental housing. While the rationalization of TDS and higher exemptions for the middle class will provide liquidity, a more direct stimulus to the sector could have accelerated investment and demand. We hope the government considers mid-year policy interventions to support real estate growth.”
Mr. Vikas Sutaria, Founder, Irah Lifespace
“The budget once again misses the opportunity to introduce dedicated incentives for NRIs and HNIs, who play a crucial role in the luxury housing segment. Streamlining taxation policies and easing investment norms for these investors could have significantly boosted investments in this segment. The rationalization of TDS and tax relief for the middle class will improve disposable incomes, indirectly benefiting housing demand. The Urban Challenge Fund will help in urban renewal, but specific measures to encourage luxury and second-home investments were needed. While the government’s commitment to infrastructure and PPP-driven development is commendable, the lack of direct incentives for real estate is disappointing.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“The budget reinforces the government’s vision for ‘Viksit Bharat’ and economic growth, yet the real estate sector was hoping for direct incentives such as industry status and tax rebates for developers and homebuyers. The Urban Challenge Fund and infrastructure-focused PPP projects will aid urban development, while the allocation for urban development is expected to catalyze growth in housing and commercial projects. Although the middle-class tax relief will support consumer spending, a comprehensive housing policy was required to address supply and demand challenges in the sector.”
Mr Samyak Jain, Director, Siddha Group
“The Union Budget 2025 marks a pivotal moment for the real estate sector, ushering in a new era of opportunity for homebuyers and developers alike. The revamped tax structure will enhance disposable incomes, empowering the middle class—especially the rising aspirational segment—to invest in homeownership with greater confidence. We anticipate a surge in housing demand, fueled by increased consumer spending power and long-term savings. This progressive move is set to accelerate industry growth, driving economic activity and strengthening the real estate landscape. The expanding middle class presents a significant opportunity for the sector, reinforcing the need for accessible, high-quality housing solutions. We remain optimistic about the transformative impact this will have on the industry. The Urban Challenge Fund is also a welcome move.”
Mr. Abhishek Jain, COO, Satellite Developers Private Limited (SDPL)
“The budget’s focus on infrastructure and PPP-driven urban transformation is a positive step, but the real estate industry was expecting more direct support. The rationalization of TDS and tax benefits for the middle class will improve disposable incomes, which could have an indirect positive impact on housing demand. However, critical issues such as liquidity constraints, high taxation, and policy bottlenecks remain unaddressed. A more comprehensive real estate policy would have further accelerated sectoral growth.”