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Union Budget 2025: The Finance Minister, Nirmala Sitharaman will likely present the Union Budget for FY 2025-26 on February 1, 2025. Earlier, for the past few weeks, she took suggestions from various industry representatives across sectors such as real estate, healthcare, finance, and technology by conducting extensive meetings.

As the Union Budget 2025 approaches, the stakeholders in the real estate sector are urging the government to set reforms that promote growth, sustainability, and ease of doing business. Industry leaders emphasize that the introduction of measures like industry status, tax incentives, single-window clearance, and relief for homebuyers is essential to pushing the sector forward. 

Here’s what top industry experts have to say:

Ashish Sharma, AVP of Operations, Brahma Group, says, "As we look forward to the Union Budget 2025, the commercial real estate sector anticipates measures to drive growth and innovation, with Grade A office spaces playing a crucial role in attracting global businesses, boosting economic progress, and establishing standards for sustainability and design. Therefore, we encourage the government to consider policies such as tax incentives for green-certified commercial projects, easier access to financing, and streamlined regulatory approvals to accelerate developments. Additionally, enhancing infrastructure in key business districts and offering incentives for hybrid workspace solutions can further boost demand. Moreover, the upcoming budget is an opportunity to address the diverse needs of luxury commercial real estate, ensuring India remains a prime destination for global corporates and high-value investments."

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Sandeep Chhillar, Founder and Chairman, Landmark Group, Said, "Supported by strong performance and sustained growth, the real estate sector is at a crucial point in its growth trajectory. The sector is pinning high hopes at the upcoming budget announcements to look into its long pending demands of industry status and single window clearance. Government must consider introducing policies and reforms, to further amplify foreign and domestic investment into the sector as it will further strengthen market sentiments. Additionally, we expect the government to consider a revision in taxation policies to offer greater benefits to first-time homebuyers as it could be a pivotal move fostering homeownership and driving broader economic growth."

Ashwani Kumar, Pyramid Infratech, said,"While the real estate sector is riding high on positive sentiment, one of the primary expectations of the sector from the forthcoming budget is the grant of industry status. Further, we urge the government to address concerns regarding high taxes on key input materials like cement and steel as they continue to inflate construction costs, impacting project viability. The anticipation further extends to implementing a single-window clearance system to streamline approvals. As one of the largest employment-generating sectors in the country, any supportive measures for real estate will create a ripple effect, boosting economic growth and job creation."

Manik Malik, CFO, BPTP said, "As the Union Budget 2025 - 26 approaches, the real estate sector eagerly awaits impactful measures to drive growth and sustainability. With rising housing demand across different locations, tax reliefs for homebuyers and incentives for the housing sector are crucial. Policies promoting sustainable development, and infrastructure enhancement will not only help in economic growth but also boost housing demand. Additionally, more real estate investments, particularly in the housing sectors, can be stimulated by extending the benefits of capital gains and allowing for greater flexibility in reinvestment standards. In addition to accelerating sector growth, a forward-thinking policy framework with these measures will support infrastructure development and job creation, both of which are essential for India's economic future.

Madhur Gupta, CEO, of Hero Realty said, "As the Union Budget 2025 approaches, we are optimistic that the government will introduce measures to propel growth in the real estate sector further. We advocate for increasing the tax rebate on housing loan interest to a minimum of ₹5 lakh. This initiative would provide substantial relief to homebuyers, easing their financial burden and encouraging greater investment in the real estate sector. Industry experts have echoed this sentiment, emphasizing that the current ₹2 lakh rebate is insufficient given the rise in property prices and construction costs. Additionally, we urge the government to implement a single-window clearance mechanism. This new system is critical to expediting the multi-approval process, ensuring greater efficiency and transparency. Such a reform would be transformative, boosting the ease of doing business and attracting further investments into the industry."

Sachin Chopda, Managing Director, Pushpam Group expects announcements of measures that align evolving market dynamics and vision for inclusive growth.  

"As we approach the Union Budget 2025, the real estate sector eagerly anticipates measures that align with evolving market dynamics and the vision for inclusive growth. For developers like Pushpam Infra, specializing in second homes and resort-style properties, we see an urgent need for reforms that promote affordability, and ease of doing business, and incentivize investments in alternative real estate segments," said Sachin Chopda.

"A key expectation is the enhancement of the tax deduction limit on home loan interest from ₹2 lakh to ₹5 lakh, which has been a long-standing demand. This adjustment could significantly improve homebuyer sentiment and drive housing demand across segments. Additionally, a revision in the GST input tax credit mechanism can reduce the financial burden on developers, ensuring cost efficiencies that could stabilize property prices," he added. 

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