The Union Budget 2025-26 presents an excellent opportunity to catalyze growth in the real estate sector, which is a key contributor to India’s economic progress and employment generation. We have high expectations from this year’s budget, as the government continues to emphasize housing and infrastructure development.
Enhancing the tax deduction limit under Section 80C and Section 24(b) for home loan principal and interest repayment can significantly boost affordability and demand in the residential sector. This step is crucial to enable middle-class homebuyers to make their dream of owning a home a reality.
As urbanization accelerates, the need for affordable rental housing is more pronounced. The introduction of tax benefits for individuals and corporates investing in rental housing can support the government’s Rental Housing Scheme and promote organized housing options.
The announcement of funds for mega infrastructure projects such as metro expansions, high-speed rail corridors, and urban transport systems can enhance connectivity and unlock new real estate growth corridors. This will directly benefit peripheral and emerging micro-markets, attracting more investment.
To attract more institutional investments, we urge the government to introduce further tax benefits and incentives for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). This will provide a strong capital flow into commercial and infrastructure projects.
The real estate sector plays a pivotal role in achieving the vision of a $5 trillion economy, and we hope the Union Budget 2025-26 will reflect a balanced and forward-looking approach that addresses key challenges and accelerates sectoral growth.
