The Union Budget 2025-26 has emphasized economic growth and inclusive development, but the absence of specific measures for the real estate sector is a major disappointment. While the ₹1 lakh crore Urban Challenge Fund is a step in the right direction to transform cities into growth hubs, the sector was expecting direct incentives such as industry status, single-window clearances, and increased tax benefits for homebuyers.
The increase in the income tax exemption limit to ₹12 lakh per year is a significant relief for the middle class. This will not only improve disposable incomes but also provide a much-needed boost to affordable and mid-income housing projects, encouraging homeownership. Moreover, the rationalization of TDS and the relief provided to the middle class through tax reductions will further boost spending power, indirectly benefiting housing demand.
A notable highlight is the progress under SWAMIH which has completed 50,000 homes in stressed projects and will deliver 40,000 more in 2025, easing financial strain on homebuyers. The ₹15,000 crore SWAMIH Fund 2 will accelerate the completion of another one lakh homes, benefiting middle-class families and boosting market sentiment.
Additionally, the announcement of a new Fund of Funds (FoF) with an expanded scope and fresh contribution of ₹10,000 crore will have a spillover effect on the start-up ecosystem and may drive innovation in PropTech, enhancing technology-driven solutions in real estate and improving efficiency in project execution and homebuying experiences.
However, we urge the government to consider targeted interventions to address liquidity concerns, expedite approvals, and create a more robust framework for real estate investments.”
