Budget 2025 to boost real estate and infrastructure!

The general budget presented by Finance Minister Nirmala Sitharaman has also received positive response from the giants of the real estate sector of North India. The promoters have praised the budget, calling it infrastructure-related, inclusive, accelerating economic development and giving a new direction to reforms. The real estate sector has described the announcement of increasing the income tax exemption limit to Rs. 12.00 lakhs, Swami Fund- 2.0, increasing the limit of TDS on rental income to Rs 6.00 lakh and boosting infrastructure on PPP model as the best decision so far. Let us know the reaction of real estate promoters regarding the budget.

Manoj Gaur, CMD of Gaur Group and Chairman of CREDAI National, said that Budget 2025 shows that the government is serious about growing the economy, strengthening infrastructure and maintaining financial stability. The steps taken to encourage start-ups and create jobs, as well as the reduction in income tax slabs, will increase the availability of money in the real estate sector and will also increase people’s willingness to buy homes.

Dinesh Gupta, Secretary, CREDAI Western UP informed that, “The budget announcements are going to give good results for the real estate sector. The decision to increase the tax slab is very positive which is in the interest of home buyers in every way. The decision to increase the fund for stuck projects will give a booster dose to housing, which will increase the supply and home buyers who have been waiting for their dream homes for years will be able to get their home. Promoting infrastructure starts the cycle of the entire economy, which also indirectly affects the real estate sector. Along with this, if the input tax credit was brought back, the budget would have been even better for the real estate sector.”

According to Avneesh Sood, Director, Eros Group, “Union Budget 2025 provides significant relief to the middle class, making home buying more accessible and real estate investment more attractive. First-time homebuyers will benefit from enhanced tax incentives and relaxation in TDS threshold on rent, thereby easing financial stress. Affordable housing initiatives, including the completion of 40,000 units under the SWAMIH Fund, will provide more options for aspiring homeowners. Rationalisation of property tax provisions simplifies compliance, thereby reducing the burden on buyers. These measures will empower the middle class, ensuring long-term affordability and financial security in home ownership.

Shailendra Sharma, MD of Renox Group, while expressing his views said that, “Many decisions of the government are very welcome for the real estate sector. Increasing the scope of the SWAMIH Fund will help in completing old stuck projects and will give opportunities to new and emerging promoters in the sector. Savings in income tax will increase the savings of the general public, which will bring them forward to invest, in such a situation, home buyers will get an opportunity and encouragement to invest. The benefit of increasing the limit of TDS on rental income will be given to those who buy second or third home, which is a positive initiative. We have seen the benefits of increasing infrastructure in the last 2-3 years and hope that its effect will be seen on real estate in the coming years as well.”

Saransh Trehan, Managing Director, Trehan Group said that tax exemption has been given on income up to ₹12 lakh. This move will significantly increase disposable income, making home ownership more feasible for first-time homebuyers. The government’s continued emphasis on affordable housing is a step in the right direction.

Suresh Garg, CMD, Nirala World believes that increasing the income tax limit will increase the purchasing power of the general public. Increasing the limit of TDS on rental income will provide relief to the people dependent on rent and people will be able to decide to buy a new house. An arrangement of Rs 15,000 crore has been made from SWAMI Fund-2 to increase infrastructure in the country and complete the stalled projects. These efforts will create a positive environment towards employment and investment. The necessary funds will be available to complete the incomplete projects, which will have a positive impact on the real estate sector.

According to Pankaj Kumar Jain, Director, KW Group, “Tax reduction in salaried taxpayers will boost the demand for residential and commercial properties, especially in the middle segment category in real estate. If RBI reduces the interest rates of home loans, then this demand will increase further. The creation of SWAMIH Fund 2 and Urban Challenge Fund will further boost the sector as these funds will help in completing the stalled projects and promoting economic development. Overall, the Finance Minister has given such a budget which will indirectly benefit this sector.

Himanshu Garg, Director, RG Group mentioned that the government has completely focused on increasing infrastructure which will revive the entire economy and this will have an impact on real estate. The saving of 12 lakhs in direct tax will enable people to save more than before and new investment opportunities will be created for them. The increase in TDS on rent up to 6 lakhs in the budget will promote investment for rent. These efforts, in particular, will encourage middle class home buyers to buy another flat, which will boost investment in real estate. By bringing Swamy Fund 2.0, the government has shown its commitment to complete the stalled projects. This will provide options for acquiring stalled projects and completing the project as a joint venture.