Union Budget 2025 Ignites Growth in Real Estate and Allied Sectors
The Union Budget for 2025 has injected a fresh wave of optimism into the real estate and allied segments, which have been awaiting positive indicators for a long time. The provisions—especially in the areas of infrastructure development, sustainability, and key growth triggers for real estate—have been well received.
Among them, leaving a massive sum of disposable income in the hands of prospective buyers in terms of increased income tax exemption will fuel high demand in the real estate market.
Mr. Rizwan Sajan, Founder and Chairman of Danube Group said, “The increased income tax exemption to Rs.12 lakh is a game-changer for the real estate sector. More disposable income means greater financial confidence encouraging buyers to invest in high-end homes. Additionally, the raising of TDS limit on rent is a welcome move for landlords and tenants alike, making leasing luxury properties more attractive. The government’s focus on infrastructure development, and urban expansion will further boost demand for premium residences.”
With a focus on the growth of luxury real estate, another frontrunner in this segment, Mr. Ajay Choudhary, CMD of Ace Group opined, "The 2025 Union Budget is set to propel the real estate sector. The higher income tax rebate will leave buyers with greater disposable income, encouraging investment in premium properties. Coupled with significant urban infrastructure initiatives, these measures create a strong growth trajectory for the high-end housing market, driving demand for luxury residences in prime locations."
Affordable housing also has received significant attention in the budget. Mr. Vijay Jain, Managing Director of Star Estate, pointed out the importance of the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund. "The Budget's focus on expanding affordable housing is encouraging. The announcement that 40,000 units of housing will be completed in 2025-26 under the SWAMIH scheme is commendable. This initiative will provide relief to families who have taken loans to buy apartments but are still paying rent for their existing dwellings," he noted.
Additionally, the SWAMIH Fund 2, with a generous Rs.15,000 crore allocation, aims to bring stalled housing projects back on track and result in the completion of over 1 lakh homes. While such provisions are expected to provide much-needed relief to homebuyers, on the ancillary side of things, the budget has also opened up new avenues.
Mr. Nitin Aggarwal, Managing Director of Prayag Polymers, shared his take on the manufacturing sector’s outlook. “Union Budget 2025 presents a forward-looking vision for the manufacturing sector. The increased investment in urban development and the housing sector will stimulate demand for high-quality products, including bathware and sanitary ware. Simplified GST structures and greater incentives for manufacturing will enable businesses like Prayag to scale production and contribute significantly to the nation's overall development,” he explained.
Another notable aspect of the budget is its continued push for infrastructure development, lauded by Mr. Gaurav Aggarwal, Managing Director of Stonex India, who said, “Union Budget 2025 reflects the government’s strong commitment to infrastructure development and the uninterrupted growth of the Indian economy. The proposed investments in logistics will significantly boost our manufacturing and export capabilities. As a leader in luxury marble, we see immense potential in the creation of a more sustainable and resilient economic ecosystem," he commented.
On similar lines Mr. Rakesh Zutshi, Managing Director of Halonix Technologies, spoke about how the budget’s initiatives could fuel innovation. “The government's push to enhance infrastructure and establish a national framework for global capability centres (GCCs) in tier-II cities is an exciting development. This initiative will boost talent availability, infrastructure, and industry collaboration, fostering innovation in energy-efficient lighting and electrical solutions,” he noted.
The introduction of the Rs.1 lakh crore Urban Challenge Fund is also being hailed as a groundbreaking step for balanced regional development. By improving connectivity and promoting public-private partnerships, it’s expected to open new doors for both real estate developers and those in the ancillary sectors.
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