What Real Estate aims from Union Budget 2025?

It’s union budget time of the year and like the entire nation, Indian real estate too has a bucket list. With the economic survey details tabling figures and the road ahead for financial aspiration today, here is what the second largest employer in the country expects from FM Nirmala Sitharaman.

From traditional real estate transactions to flexible payment methods, Indian real estate has come a long way. However, the challenges for developers remain constrain in the growth momentum. Union Budget 2025-26 by FM Nirmala Sitharaman can boost the country’s aspirations and dreams by rendering a green signal.

Here are the key points realtors look forward in the upcoming Union Budget for the fiscal year 2025-26.

Industry Status

Real estate seeks industry status from the latest Union Budget. It is a demand that developers have been waiting for a long. The consideration as Industry will streamline business and operations.

Also, the property market will get massive benefits similar to other industries. Like, improving the salary structure, pay package, and other interests of employee welfare.

Single-Window Clearance

The second thing on the real estate wishlist from Union Budget by Nirmala Sitharaman. It intertwines with industry status and the single-window clearance system will amplify the ease of doing business.

For developers, the single-window system will act as a time saver and will reflect in projects' timely completion. Unlike waiting for approval from distinguished Government departments, the single-window clearance is a way to get all sanctions in one go.

It will massively trigger fast-pace working in the construction of property projects. Also, with timely disbursal of loans, developers will find meeting clients' expectations seamlessly.

You may also Read: Best Residential Projects in Mumbai for Investment in 2025

You may also Read: Real Estate Budget 2024: Emphasis on infrastructure and new housing Initiative

Mr. Vijay Jain, Managing Director, Star Estate said, "As real estate consultants, we are excited about the anticipated significant reforms in the Union Budget 2025, which we believe will tackle current challenges and promote growth. We expect the upcoming budget to encourage homeownership by raising tax exemption limits on home loans. Additionally, it should maintain subsidies for first-time home buyers. Enhancing infrastructure and simplifying regulatory frameworks will also be essential for creating a more stable and efficient real estate market."

Emphasize Affordable Housing

After an overwhelming response to the affordable housing scheme since its introduction, figures hint at hitting rock bottom. Despite massive grants under Pradhan Mantri Awas Yojna in the budget, there is a decline in demand.

Especially after COVID, the graph for affordable housing has dropped significantly, leaving Indian real estate in shock. These residential properties ranging in the budget of Rs. 40 Lakhs aren’t the showstopper anymore.

Considering disinterest, developers urge the Government to outline what defines affordable housing. Also, the re-introduction of CLSS (Credit-linked Subsidy Scheme) in the business will play a pivotal role in gaining the momentum back.

“CREDAI (the Confederation of Real Estate Developer’s Association of India) recommends delinking unit prices from the carpet area definition and suggests updating the thresholds to 70 square meters for metro cities and 90 square meters for tier 1 cities. These adjustments aim to incentivize developers to focus on affordable housing projects while making homeownership more accessible to a broader range of income groups,” said Boman Irani, President of the Industry body.

(Courtesy – Money Control)

Real estate experts feel tax rebates on home loan interest rates and reducing stamp duty charges will boost affordable housing segment massively.

It is one of the mega reliefs, the Indian real estate market expects from the Union budget 2025-26.

REITs – Strengthening with it Incentives

REIT, the Real Estate Investment Trust, a one of its kind structural initiative in real estate needs support. From the upcoming union budget 2025, the market expects tax incentives on REITs.

The addition of simple structures and SOPs for green development will lure property investors to REITs. The purpose of REIT establishment is to expand the investment window in the market. However, more lucrative and strong tactics are required to make REIT a trendsetter investment option. A strong ecosystem will foster much-needed realms in the Indian real estate.

Focus on Co-Working Segment

A brand new vertical in Indian real estate needs attention. From the union budget 2025, the Indian property market expects a serious look to make business easy. Not only for developers but also investment in the co-working segment must be made easy for start-ups and small businesses.

The flexible work culture and demand for commercial properties together will play a decisive role in the property market future. Thus, FM Nirmala Sitharaman must focus on robust allocation for the development of a new era in Indian real estate.

Rajat Kapur, Managing Director, North India, UAE, and Kingdom of South Arabia said, “Simplifying processes for GCCs (Global Capacity Centers) to set up Offices in India will further enhance the country’s position as a global business hub. Initiatives to streamline investments and enhance urban infrastructure will empower co-working players to drive growth and innovation while contributing to India’s economic progress.”

(Courtesy – Money Control)

From FM Nirmala Sitharaman’s consecutive eight budget speech, Indian realtors expect a bag of goodies. Along with empowering businesses, these decisions will boost the Indian economy positively.

The Union Budget 2025-26 will be presented on 01st February 25’ at 11 am in the Parliament.