India's real estate sector is poised to touch the USD 1 trillion mark by 2030. In the Union Budget 2024, the government had allocated Rs. 11.11 lakh crore for infrastructure development and laid a solid foundation for the country's realty sector.
In Budget 2025, India's realty sector expects a more inclusive and growth-focused approach from the government. Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26 on February 1. It is expected that many big announcements can be made in this sector.
Affordable housing gets a boost Vikas Garg, Joint Managing Sirector, Ganga Realty, expects the budget to give a boost to the real estate sector, especially the luxury housing segment and allied industries. Simplifying GST, increasing tax benefits for homebuyers, and incentivising affordable and mid-segment housing can boost demand across categories. The luxury housing market is driven by changing buyer preferences. It will benefit from initiatives like reducing stamp duty and making financing easier.
In addition, supporting allied sectors such as construction materials, interior and technology integration will have a positive impact on the entire economy. We hope that the budget will accelerate the growth of the sector keeping all these aspects in mind.
Tax Benefits for Homebuyers
"We expect the upcoming budget to take progressive steps to strengthen the real estate sector, which contributes significantly to economic growth," stated Saransh Trehan, Managing Director, Trehan Group.
Measures like reducing GST on under-construction properties, increasing tax benefits for homebuyers and increasing funds for affordable housing schemes will stimulate demand and investment. Special focus on infrastructure development, simplification of approval processes and support to green construction will benefit both developers and buyers. Besides, initiatives to promote rental housing and revive allied sectors like building materials and interior design will ensure holistic development. A balanced and growth-oriented budget can unlock the true potential of the sector.
