But, developers are all praise for FM Sitharaman for “very encouraging” announcements that shows the government’s focus on strengthening the economy
MUMBAI, Feb 2 (The CONNECT) – The Union Budget presented by Finance Minister Nimala Sitharaman yesterday was totally silent on the long-standing demand for an industry status to the sector. Yet, realtors from all across are head-over-heels in praising the Budget.
One of them said – This is a very encouraging budget and shows the government’s focus on strengthening the economy and ensuring long-term robust economic growth.
Sitharaman was also silent on the realtors’ chorus to redefine affordable housing, particularly in metros, and allow raise the bar. Anuj Puri, Chaiman of Anarock group, said, a notable shortfall was the absence of major announcements for the affordable housing sector, leaving stakeholders disappointed.
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.”
Anuj Puri, Chairman – ANAROCK Group: The Union Budget focused on economic expansion, infrastructure development, MSMEs, futuristic cities, and middle-class welfare and brings substantial relief for the middle class. It also aims to stimulate rural consumption – an essential step toward unlocking India’s economic potential.
From a real estate perspective, the budget delivers both direct and indirect benefits, acting as a catalyst for growth. However, a notable shortfall was the absence of major announcements for the affordable housing sector, leaving stakeholders disappointed.
Despite this, the budget overall remains strong and growth-oriented, with a clear focus on economic development and enhanced consumption. Key takeaways for the real estate sector include:
While the affordable housing sector saw fewer direct benefits, the budget is, overall, pro-growth, infrastructure-driven, and investment-oriented. The focus on middle-class relief, urban development, and connectivity is expected to stimulate real estate demand across various segments, making it an overall progressive and impactful budget.
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.”
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.”
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.
Mrinal Kumar, Partner, Shardul Amarchand Mangaldas & Co: Warehousing is a key contributor to the growth of the logistics sector in India and drives demand for real estate assets. The Governemtn’s initiative will further increase the demand in the logistics sector, leading to growth of employment opportunities and infrastructure development.
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.
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.”
Gaurav Pandey, Co-Chairman, FICCI Committee on Urban Development and Real Estate and Managing Director and CEO, Godrej Properties Ltd: This is a very encouraging budget and shows the government’s focus on strengthening the economy and ensuring long-term robust economic growth. Some of the steps taken by the government will significantly boost consumption demand.
The emphasis on infrastructure initiatives and overall capex estimates for the next FY are significant. The heartening thing has been the ability to manage fiscal prudence and reduced fiscal deficit projections in FY25E and FY26. This makes the sustenance of growth more probable and long-term.”
Anshul Singhal, Managing Director, Welspun One & Chairperson of ASSOCHAM National Council on Logistics & Warehousing: The Union Budget 2025-26 highlights the Modi government’s commitment to infrastructure-led growth, digital integration, and investment-friendly reforms, laying the foundation for a robust and future-ready India. By prioritizing agriculture, MSMEs, investments, and exports – the four critical engines driving industrial expansion and supply chain efficiency – the budget seemed to be aligned to strengthen India’s position as a global manufacturing and trade hub. The ₹1.5 lakh crore allocation for infrastructure, the ₹1 lakh crore Urban Challenge Fund, and PPP-driven initiatives will catalyze the next wave of industrial expansion, transforming cities into economic hubs.
In logistics and warehousing, streamlining cargo screening, upgrading air cargo infrastructure, and evolving India Post into a national logistics powerhouse will redefine supply chain efficiencies and last-mile connectivity across urban-rural markets. Additionally, the budget’s strong focus on developing port facilities and strengthening port-based logistics hubs will accelerate our global trade ambitions. The introduction of the Bharat Trade Net, access to PM Gati Shakti data, and the Bilateral Investment Treaty reinforce the government’s push for an integrated and investment-friendly economy. Reducing turnaround times, optimizing supply chains, and fostering structured logistics clusters – these initiatives will decongest cities, enhance trade competitiveness, and drive economic growth. These measures, with the incentives for warehouse enhancements and dedicated logistics infrastructure, highlight a progressive shift towards sustainability, digitalization, and private-sector collaboration.
However, for sustained industrial expansion – simplified land acquisition, incentives for green warehousing, and tax clarity for AIFs remain crucial. Recognizing warehousing as a capital-intensive sector and extending GST benefits for industrial real estate will further encourage large-scale investments, helping India cement its position as a leader in global trade and industrial infrastructure. As India moves toward a $5 trillion economy, industry and policymakers must work together to execute these visionary reforms. At Welspun One, we look forward to contributing to this transformation—building a tech-driven, climate-conscious, and globally competitive logistics and warehousing ecosystem.”
MP Ahammed, Chairman, Malabar Group: The budget reflects the government’s continued focus on revitalizing consumption, strengthening domestic manufacturing, and fostering job creation. Therefore, the budget has rightly focussed on offering fiscal impulse to boost consumption. With personal income tax reform, it will free up disposable income to boost urban consumption. It will boost the spending power of the middle-income segment and enhance consumer sentiment—both critical drivers of economic growth. For the retail and jewellery sector, a rise in consumption directly translates into stronger demand, fuelling expansion and employment generation.
Badal Yagnik, Chief Executive Officer, Colliers India: The Union Budget 2025-26 has continued to further the goal of ‘Viksit Bharat’ and ‘Sabka Vikas’ through transformative reforms across six key domains including urban & real estate development, power & mining sectors, financial services and taxation as well regulatory reforms. Balanced regional growth across tier I & II cities will be driven by engines such as agriculture, MSMEs, investments and exports. The National Manufacturing Mission, guidance framework for GCCs, start-up focused AIF, SWAMIH 2 fund and Urban Challenge Fund, all hold potential to significantly accelerate real estate growth across multiple real estate segments. The budget has continued to focus on improving the ease of doing business through innovation, technological upgradation and sharing of data between public & private sector establishments. The extension of the SWAMIH fund is a much-expected move as several real, estate projects continue to reel under stress due to funding constraints, delaying delivery of homes. Additionally, rationalization of taxes and enhancement of exemption limits can boost disposable income spurring consumption levels and real estate investments, particularly in residential real estate and alternate financial instruments such as REITs.
Shrinivas Rao, FRICS, CEO, Vestian: The Union Budget 2025 focuses on employment generation, boosting domestic consumption, and enhancing connectivity by concentrating on the rapid development of physical infrastructure and increasing disposable income of citizens. This will have a positive impact on increasing demand for all real estate asset classes across the country. Furthermore, the budget has an allocation of INR 15,000 Cr under the SWAMIH Fund for addressing liquidity issues of delayed housing projects. This along with the digitization of land records is expected to strengthen homebuyers’ confidence.
Upgradation of infrastructure facilities for air cargo will multiply the demand for warehousing across the country. Focus on setting up GCCs in tier-2 cities will transform the real estate landscape in the emerging cities of India.
Piyush Bothra, Co-Founder and CFO, Square Yards: The budget introduces much-needed relief, particularly with the zero-tax provision on annual incomes up to Rs 12 lakh—a move that enhances disposable income and is expected to support homebuyers. Additionally, the allocation of Rs 15,000 crore under the SWAMIH Fund for completing 1 lakh stalled housing units is a significant intervention, providing relief to buyers impacted by delayed projects and supporting supply-side stakeholders.
However, additional measures could have further strengthened the sector. Increasing home loan deduction limits would have improved financing accessibility, particularly for first-time homebuyers and end-users. This could have enhanced affordability, eased credit constraints, reduced tax liabilities, and contributed towards meeting the projected demand of 93 million housing units by 2036.”
Pratyush Pandey, CEO, Upflex India: The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, introduces several measures impacting India’s real estate sector. A notable change is the reduction of the long-term capital gains (LTCG) tax rate on property sales from 20% to 12.5%. However, the removal of the indexation benefit, which previously allowed sellers to adjust the purchase price of property for inflation, may lead to higher tax liabilities, especially for long-held properties.
The budget outlines plans for Transit-Oriented Development in 14 large cities, including Mumbai. This approach integrates residential and commercial spaces with public transport networks, aiming to enhance urban liveability and potentially increasing property values in these areas.
Saurabh Runwal, Director, Runwal Realty: We applaud the Government and Finance Nirmala Sitharaman, for presenting a Budget that prioritizes economic growth. The substantial increase in the TDS threshold for rental income—from ₹2.5 lakh to ₹6 lakh—is a welcome move that will provide much-needed relief to both landlords and tenants. By reducing the TDS burden, this initiative is expected to stimulate the rental market, encourage greater investment in rental properties, and expand the overall supply of housing. It also has the potential to drive homeownership with rental intent, particularly benefiting the affordable housing segment and contributing to the sector’s growth.
Furthermore, the increase in the income tax exemption limit to ₹12 lakh will result in higher disposable income for a significant portion of the population, fostering greater consumer spending and economic momentum. This improved affordability is likely to accelerate investments in real estate, strengthening the sector’s expansion and resilience.
The relaxed tax brackets are expected to significantly boost consumer confidence, particularly among homebuyers. With higher disposable income, individuals will have greater purchasing power, likely leading to an increase in home buying activity across the country. This positive impact is anticipated to be particularly pronounced in suburban areas of major cities like Mumbai, Pune, and others. These locations have recently witnessed a surge in demand driven by factors such as the availability of spacious homes, improved connectivity, and overall socio-economic development.
Overall, this Budget sets a positive tone for the economy, empowering citizens with financial security and fostering smart investment opportunities.
Ashoo Gupta, Partner, Shardul Amarchand Mangaldas & Co.: SWAMIH Fund 2 will help homebuyers by ensuring that stalled housing projects are completed, reducing their financial burden. Many middle-class families are struggling with both EMIs and rent, and this fund will provide relief by speeding up project completion. It will also attract private and institutional investment, making the real estate sector more stable. The construction activity it generates will create jobs and support economic growth.
Mrinal Kumar, Partner, Shardul Amarchand Mangaldas & Co:mSWAMIH Fund – 2 will provide an impetus for growth of the real estate sector and invigorate the growth of other allied industries and revenues generated from them and ensure handover of completed projects to homebuyers which were earlier stagnant /incomplete.
