The Union Budget 2025 has set a decisive course for India’s real estate sector, reinforcing its role as a key driver of economic growth. With a strong emphasis on housing, infrastructure expansion, and investment-friendly reforms, the budget introduces transformative measures that will accelerate urban development, enhance affordability, and unlock new opportunities across residential and commercial real estate.
“Amid global economic turbulence, India’s luxury real estate sector is not just enduring but thriving, driven by resilience, ambition, and an expanding investor appetite. The Budget 2025-26 accelerates this momentum with a sharp focus on urban transformation, backed by the ₹10 lakh crore asset monetization plan and ₹1 lakh crore Urban Challenge Fund,” said Aditya Kushwaha, CEO and Director. Axis Ecorp.
Expanding expressways, airports, and smart cities will enhance connectivity, making high-end residential and commercial spaces more attractive to investors. Additionally, “the government’s push to develop 50 top tourist destinations will create new demand for luxury hotels, branded residences, and premium retail hubs, reinforcing tourism as a key economic driver. Enhanced foreign investment policies and expanded NRI participation will further unlock capital inflows, strengthening India’s position as a premium real estate destination. With infrastructure-led growth and regulatory ease, the sector is set for sustained expansion,” added Kushwaha.
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The realty sector has hailed the Budget for its strategic focus on housing, economic resilience, and tourism-led growth. The ₹15,000-crore SWAMIH Fund 2 will fast-track the completion of 1 lakh stalled housing units, restoring liquidity and boosting homebuyer confidence.
“Targeted rental housing incentives and self-occupied home tax benefits will further drive demand, particularly among urban and middle-income buyers. The expansion of MSME credit and women-centric entrepreneurship initiatives will enhance financial independence, fostering both homeownership and commercial real estate growth. Additionally, the development of 50 top tourist destinations will unlock vast opportunities in hospitality, retail, and urban infrastructure, reinforcing tourism as a key economic driver. With infrastructure expansion and substantial income tax relief, this budget creates a strong foundation for sustained growth across housing, tourism, and allied sectors, making homeownership and investment more accessible than ever,” said Amrita Gupta, Director of Manglam Group and Founder President of CREDAI Rajasthan Women’s Wing.
The Budget 2025 lays a robust foundation for India’s real estate landscape, with a strong focus on infrastructure-led growth and housing affordability.
“The ₹10 lakh crore asset monetization plan, coupled with the ₹1 lakh crore Urban Challenge Fund, will accelerate urban redevelopment and boost commercial real estate. The expansion of MSME credit will create fresh demand for office spaces, retail hubs, and warehousing, strengthening the backbone of India’s commercial sector. Additionally, the ₹10,000 crore Fund of Funds for Startups and the increase in credit guarantee cover from ₹10 crores to ₹20 crores will empower new businesses, further driving demand for co-working spaces, innovation hubs, and commercial leasing, boosting commercial real estate in metro and Tier-2 cities,” said Mohit Goel, Managing Director, Omaxe Ltd.
Navin M. Raheja, Chairman and Managing Director of Raheja Developers Limited, said, “The government’s allocation of ₹1 lakh crore to the Urban Challenge Fund is a commendable step towards transforming our cities into dynamic growth hubs. This initiative will not only enhance urban infrastructure but also create significant opportunities for creative redevelopment, benefiting both developers and residents. Furthermore, the tax relief allowing taxpayers to claim the annual value of two self-occupied properties without conditions is a progressive measure. This change reduces the tax burden on homeowners and encourages investment in the housing sector.”
The announcement made in the Union Budget shows the government’s balanced approach focused on empowering the middle class, encouraging private investment, and maintaining favorable economic conditions.
“Now no income tax is needed to be paid on total income up to Rs 12 lakh per annum and this has come as a great encouragement for millions of first-time homebuyers. Besides, the government’s continued focus on strengthening infrastructure across states and cities has been mentioned in this year’s budget. Extending support to states, an outlay of 1.5 lakh crore is proposed for the 50-year interest-free loans to states for capital expenditure and incentives for reforms. This will propel infra upgradation across the country and drive growth in the real estate sector as well,” observed Sandeep Chhillar, Founder and Chairman, Landmark Group.
Amit Modi, Director, County Group, said, “For real estate buyers, the proposal to value two self-occupied properties at nil for tax purposes brings much-needed relief—particularly for middle-class professionals in metro cities who also posess a self-occupied second home in their villages or hometowns. Similarly, raising the TDS threshold on rental income from Rs 2.5 lakh to Rs 6 lakh will benefit those dependent on rental earnings. Furthermore, the revision in tax slabs—exempting income tax up to Rs 12 lakh—places more disposable income in the hands of the middle class planning for future real estate investments. On the affordable housing front, corpus under the SWAMIH scheme implemented earlier has resulted in the construction of 50,000 dwelling units, and another 40,000 is in the pipeline. The establishment of SWAMIH Fund 2, with an additional Rs 15,000 crore, further strengthens the government’s resolve to promote affordable housing development.”
Salil Kumar, Director (Marketing & Business Management) of CRC Group, said, “By increasing the TDS threshold on rental income and exempting income tax on earnings up to ₹12 lakh, the budget has created an environment that encourages homeownership, especially among the middle class. The allocation of ₹1.5 lakh crore for interest-free loans to states will support urban development and infrastructure, further boosting demand for both residential and commercial properties.”
Uddhav Poddar, CMD, Bhumika Group, said, “The government’s emphasis on infrastructure development and economic prudence sets the stage for sustained real estate growth. A key highlight is the focus on enhancing the role of Public-Private Partnerships (PPP) in India’s infrastructure development, which will boost the country’s commercial projects while ensuring long-term progress. Moreover, the tax slab revision exempting income tax up to Rs 12 lakh will leave the middle class with more money to consider investing in real estate.”
Vivek Sinha, Director, Sales and Marketing, KDMG Group, said, “One of the key measures announced in the budget is the simplification of the annual value of self-occupied property, setting it at zero even if the owner cannot physically occupy it. This reduces tax burdens and encourages homeownership. Additionally, the continued support for the SWAMIH fund, with another 40,000 units slated for completion in 2025, will provide relief to homebuyers stuck in stalled projects while unlocking liquidity in the sector. The income tax exemption for earnings up to Rs 12 lakh is a significant step toward increasing disposable income, making homeownership more accessible and driving demand. Further boosting urban growth, the Rs 1 lakh crore Urban Challenge Fund will accelerate city infrastructure development, creating new investment opportunities in real estate.”
Zafeer Ahmed, Managing Director, XRE Consultants, said, “It is refreshing to note that the government has carefully structured this three year plan on infrastructure related to projects from public private partnerships, as this will yield significant returns over a longer period. This broad vision is also applicable to enhancing air cargo infrastructure, where upgrading of warehousing facilities to accommodate high quality perishable horticulture produce is greatly anticipated. It is expected that extending fifty year, interest free loans will aid in persuading the states to spend heavily without aggravating their budgets.This strategy on infrastructure development like road, transport and logistics in the economy will attract private sector funding as well as accelerate growth. With this type of detailed planning coupled with funding, it is believed that states will be able to strengthen public-private partnerships while establishing a long-lasting infrastructure which augments India’s logistics across the board.”
Aman Gupta, Director, RPS Group, said, “SWAMIH has been expanding its focus from the completion of stressed housing projects by completing 50,000 dwelling units to a goal of completing 40,000 dwelling units by 2025. The government’s increased focus on solving the middle-class urban housing dilemma is further evident from the establishment of SWAMIH Fund 2 with a blended approach, which aims to collect ₹15,000 crores. This is a great step towards completing pending projects and alleviating the pain for millions of families managing both EMIs and rent.”
Sandeep Mangla, Managing Director, Forteasia Realty Pvt. Ltd, said, “Fund 2 of SWAMIH represents sophistication in the evolution of real estate financing systems. This allows for effective blended finance which involves contributions from the government, banking systems, and private organizations. All of this provides a solid foundation for completing the projects. The goal of completing additional units set at one lakh is very bold, but will greatly aid in the recovery and growth of the housing sector.”
L.C. Mittal, Director, Motia Builders Group, said, “Deductions related to two self-occupied properties treated as taxable to the tune of zero is a remarkable shift captivating the nuances of real estate ownership within urban India. This policy will greatly benefit property owners whose personal and professional commitments span two or more metros, as it alleviates their tax liabilities while keeping pace with the realities of modern day living.”
Anurag Goel, Director, Goel Ganga Developments, said, “Expanding existing projects and starting a new fund mark strategic planning when attempting to solve problems in the real estate industry. Mounting liquidity in the market alongside easing some pressure on homebuyers is bound to happen with the completion of 90,000 units by the year 2025. These changes in tax policy for those who occupy the properties reveal an emergent comprehension of the housing sector today.”
Saurabh Tyagi, Co-Founder and CEO of PropChk, said, “The nuanced understanding of market dynamics is evident from the comprehensive approach taken on real estate sector reforms involving completion of projects under SWAMIH and changes to the tax policy. After the successful delivery of 50,000 units and 40,000 in supply scheduled alongside tax incentives for owners of multiple properties, a sustainable sector growth becomes easier to obtain.”
Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, said, “Formally, allowing the occupation of two properties and maintaining a nil valuation will boost real estate tax policy modernization. This reform is socioeconomic in nature, providing investment incentives to property owners and making allowance for multi-city living. It will indeed increase supply to the housing market whilst enhancing geographical mobility of the owners.”