From Tax Reforms to Infrastructure Push: What Budget 2025 Means for Real Estate

The
Union
Budget
2025
has
set
the
stage
for
sustained
economic
momentum,
with
significant
allocations
for
infrastructure,
tax
reforms,
and
urban
transformation.
For
the
real
estate
sector,
it
brings
both
opportunities
and
areas
for
further
contemplation.
While
the
government’s
thrust
on
capital
expenditure,
tax
reliefs,
and
liquidity
enhancement
has
instilled
confidence,
industry
leaders
are
keen
to
see
how
these
measures
translate
into
on-ground
impact.

Balancing
Growth
and
Stability
The
budget
underscores
the
government’s
dual
focus
on
economic
expansion
and
fiscal
prudence.
According
to

Manoj
Gaur,
CMD,
Gaurs
Group
&
Chairman,
CREDAI
National,
“Budget
2025
underlines
the
Central
government’s
commitment
to
economic
expansion,
infrastructure
advancement,
and
financial
stability,
thereby
fostering
a
conducive
environment
for
real
estate
growth.
Measures
supporting
start-ups
and
job
creation,
coupled
with
much-needed
reductions
in
income
tax
slabs,
are
set
to
enhance
liquidity
and
stimulate
demand
in
the
sector.
While
the
focus
on
overall
growth
is
encouraging,
we
look
forward
to
further
initiatives
that
will
accelerate
affordable
housing
development,
ensuring
inclusive
progress
for
the
country.”

This
balanced
approach
resonates
with

Ashwinder
R
Singh,
Vice-Chairman
&
CEO,
BCD
Group
&
Co-Chair,
CII
Real
Estate
Committee,
who
sees
the
budget
as
a
well-calibrated
economic
stimulant.
“Budgets
are
about
choices,
and
this
one
strikes
a
fine
balance-between
growth
and
discipline,
consumption
and
investment.
By
putting
more
money
in
the
hands
of
the
middle
class,
the
government
has
recognized
demand
as
India’s
economic
engine.
Infrastructure
investments
will
expand
urban
corridors,
unlocking
real
estate
opportunities.
While
sector-specific
incentives
could
have
added
momentum,
the
broader
framework
fosters
stability
and
confidence.
The
focus
now
is
on
swift
execution
to
turn
intent
into
impact.”

Infrastructure
and
Urban
Development:
A
Game-Changer
The
real
estate
sector
stands
to
benefit
from
the
increased
capital
expenditure
on
infrastructure,
particularly
through
initiatives
such
as
the
₹1
lakh
crore
Urban
Challenge
Fund
and
₹1.5
lakh
crore
interest-free
loans
to
states.
These
measures
are
expected
to
accelerate
urban
transformation,
boost
connectivity,
and
generate
employment,
thereby
indirectly
fueling
real
estate
demand.

Gurpal
Singh
Chawla,
Managing
Director,
TREVOC,
believes
this
emphasis
on
infrastructure
is
a
positive
signal
for
long-term
growth.
“The
budget
effectively
balances
development
priorities
with
financial
stability.
The
emphasis
on
infrastructure
growth,
including
the
Rs
1
lakh
crore
Urban
Challenge
Fund,
lays
a
strong
foundation
for
long-term
progress.
Additionally,
key
tax
revisions
enhance
market
liquidity,
ultimately
creating
an
optimistic
roadmap
for
the
real
estate
sector.”

Ashwani
Kumar,
Pyramid
Infratech,
echoes
this
sentiment,
highlighting
the
PPP
model’s
role
in
expanding
opportunities
for
developers.
“The
Union
Budget’25
announcements
reflect
the
constructive
growth
plan
chalked
out
by
the
government.
The
emphasis
given
to
the
PPP
model
for
infrastructural
development
and
proposing
an
outlay
of
₹1.5
lakh
crore
for
the
50-year
interest-free
loans
to
states
for
capital
expenditure
will
create
various
opportunities
for
private
players
to
contribute
to
economic
development
significantly.”

Tax
Reforms:
Boosting
Affordability
and
Investments
One
of
the
most
discussed
aspects
of
the
budget
is
the
revision
in
tax
slabs,
which
enhances
disposable
income
and
boosts
home
affordability.
The
exemption
of
tax
on
annual
incomes
up
to
₹12
lakh
is
expected
to
increase
demand
in
the
residential
real
estate
segment,
particularly
for
mid-income
and
affordable
housing.

Rajjath
Goel,
Managing
Director,
MRG
Group,
believes
the
revised
taxation
structure
will
encourage
real
estate
investments.
“The
allocation
for
infrastructure
development,
urban
transformation,
and
SWAMIH
Fund
2,
along
with
tax
reforms
that
will
improve
liquidity,
lays
the
foundation
for
the
country’s
continued
economic
progress.
Steps
such
as
nil
tax
for
two
self-occupied
properties
and
rental
income
up
to
Rs.
6
lakh
will
enhance
the
lucrativeness
of
real
estate
investments.
We
are
hopeful
that
these
measures
will
lead
to
sustained
real
estate
expansion,
benefiting
homebuyers
and
investors
alike.”

The
revised
Tax
Deducted
at
Source
(TDS)
threshold
on
rental
income,
raised
from
₹2.4
lakh
to
₹6
lakh,
is
another
welcome
step,
particularly
for
the
affordable
and
mid-segment
rental
market.

Manit
Sethi,
Director,
Excentia
Infra,
appreciates
this
move,
stating,
“The
increase
in
the
TDS
threshold
limit
on
rent
from
₹2.4
lakh
to
₹6
lakh
is
a
significant
boost
for
the
rental
housing
market.
This
move
will
ease
compliance
for
those
in
the
affordable
and
mid-segment
rental
sector.”

Goa
and
Tourism-Centric
Real
Estate
to
Gain
The
budget
also
holds
promise
for
tourism-led
real
estate
growth,
particularly
in
locations
such
as
Goa.
By
classifying
hotels
under
Infrastructure
HML,
the
government
has
opened
doors
for
increased
hospitality
investments,
which
will
indirectly
fuel
demand
for
commercial
and
residential
properties.

Ravindra
Gandhi,
Founder
and
Managing
Director
of
Tirasya
Estates
views
this
as
a
transformative
measure.
“The
revised
tax
slabs,
which
offer
increased
rebates
and
lower
tax
rates,
will
enhance
disposable
income,
encouraging
greater
investment
in
the
overall
real
estate
sector,
particularly
in
second
homes
and
vacation
properties.
The
extension
of
tax
benefits
for
investments
in
infrastructure
and
real
estate
further
strengthens
Goa’s
position
as
a
lucrative
destination
for
both
domestic
and
international
investors.
With
Goa
identified
as
a
top-tier
tourism
hub,
the
inclusion
of
hotels
in
the
Infrastructure
HML
and
the
₹1
lakh
crore
Urban
Challenge
Fund
will
facilitate
world-class
hospitality
projects.”

SWAMIH
Fund
2:
A
Step
Towards
Housing
Revival
The
₹15,000
crore
allocation
for
SWAMIH
Fund
2
is
another
critical
move
aimed
at
addressing
the
stalled
housing
projects
across
India.
This
will
not
only
ensure
the
completion
of
delayed
projects
but
also
restore
confidence
among
homebuyers
and
developers.

Manit
Sethi
believes
this
is
a
much-needed
intervention, “The
₹15,000
crore
SWAMIH
Fund
2
is
another
transformative
step
in
addressing
India’s
housing
shortage.
Besides,
allowing
taxpayers
to
claim
the
annual
value
of
two
self-occupied
properties,
instead
of
just
one,
is
a
major
relief
for
property
owners.”

The
Road
Ahead:
Turning
Policy
into
Progress
While
Budget
2025
sets
a
positive
tone
for
real
estate,
its
real
impact
will
depend
on
swift
implementation
and
effective
execution.
The
focus
on
infrastructure,
taxation
reforms,
and
liquidity
infusion
has
been
well
received,
but
sector
leaders
continue
to
seek
more
targeted
incentives
for
affordable
housing
and
commercial
real
estate.

The
coming
months
will
be
crucial
in
determining
how
these
budgetary
measures
translate
into
real
growth,
shaping
India’s
real
estate
landscape
in
the
years
to
come.