In response to the Union Budget 2025-26 announced by Finance Minister Nirmala Sitharaman on Saturday, 1^st February, leaders from the real estate sector have expressed a mix of optimism and disappointment regarding the implications for the industry. While the budget emphasizes economic growth and urban development, many industry experts feel that specific measures for real estate were lacking.

Mr. Prashant Sharma, President, NAREDCO Maharashtra

“Budget's focus on economic growth and the introduction of the Rs. 1 lakh crore Urban Challenge Fund as positive steps towards transforming cities. However, absence of direct incentives for the real estate sector, such as industry status and increased tax benefits for homebuyers”, said Mr. Sharma.

He noted that the increase in the income tax exemption limit to Rs.12 lakh per year would benefit the middle class and boost affordable housing projects. Mr. Sharma also welcomed the progress under the SWAMIH initiative, which aims to complete stressed housing projects, and the introduction of a new Fund of Funds to enhance innovation in PropTech.

Mr. Rohan Khatau, Director, CCI Projects

Mr. Khatau welcomed the increased infrastructure spending and public-private partnership (PPP) initiatives but expressed disappointment over the lack of reforms in stamp duty and home loan interest deductions. “While the budget provides liquidity through tax relief for the middle class, a more direct stimulus for the real estate sector could have accelerated investment and demand”, he said.

Mr. Vikas Sutaria, Founder, Iraah Lifespace

“The budget missed an opportunity to introduce incentives for non-resident Indians (NRIs) and high-net-worth individuals (HNWIs) in the luxury housing segment”, said Mr. Sutaria.  He acknowledged the positive impact of the Urban Challenge Fund and tax relief for the middle class but reiterated the need for specific measures to encourage investments in luxury and second homes.

Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers

“The budget aligns with the government's vision for a developed India, the real estate sector was hoping for more direct incentives”, said Ms. Shraddha. She emphasized the importance of a comprehensive housing policy to address supply and demand challenges, despite the positive implications of the Urban Challenge Fund and infrastructure projects.

Mr. Samyak Jain, Director, Siddha Group

Mr. Jain expressed optimism about the budget's potential to enhance disposable incomes and empower the middle class to invest in homeownership. “We can anticipate a surge in housing demand driven by increased consumer spending power and long-term savings, viewing the budget as a pivotal moment for the real estate sector”, he said.

Mr. Abhishek Jain, COO, Satellite Developers Private Limited (SDPL)

Mr. Jain acknowledged the budget's focus on infrastructure and urban transformation but called for more direct support for the real estate industry. “While tax benefits for the middle class could positively impact housing demand, unresolved issues such as liquidity constraints and high taxation remain critical challenges that need to be addressed for sustained growth in the sector”, he said.