Real estate experts react to tax cuts, unmet affordable housing expectations

The Budget 2025 has elicited a spectrum of responses from real estate experts reflecting both commendations for certain initiatives and concerns over unmet expectationsDr Niranjan Hiranandani Chairman NAREDCO amp Hiranandani Group said that from the vantage point of the real estate and infrastructure sectors the Budget 2025 sets the stage for transformative growthCentral to this budget is its unwavering focus on infrastructure enhancements Notably it incentivizes the purchase of a second flat encouraging real estate investments Moreover the introduction of SWAMIH Fund 20 seeks to alleviate the burden on constrained homebuyers by delivering stalled projects while the hike in TDS on rentals up to Rs 6 lakh promises to bolster rental investments By expediting mergers and acquisitions the budget aims to initiate new real estate projects under innovative business models Additionally addressing the skill gap through the establishment of new centres of excellence will help bridge the widening talent chasm However the concern over inadequate longterm investment allocation remains a hindrance to achieving the ambitious Viksit Bharat growth targets he saidThe middle class a crucial driver of demand stands to benefit immensely from tax incentives that translate their aspirations for an improved quality of life into tangible homebuying prospects This is expected to generate a positive demand curve in the real estate sector Banks have reported a notable 4037 increase in retail home loan portfolios postCOVID and the anticipated reduction in home loan interest rates will further fuel this sustained demand Emerging growth corridors featuring new projects with integrated amenities are poised to attract even more buyers Hiranandani addedHe said that the budget also shines a spotlight on labourintensive sectors to ensure that quality productivity and competitiveness are enhanced positioning India as a formidable global player A strategic highlight is the finance ministers announcement of a Rs 1 lakh crore Urban Challenge Fund This fund aims to address land and development obstacles foster robust social infrastructure in key urban centres and drive infrastructure development across urban corridors The focus on new airports shipping ports and inland waterways is set to transform India into a competitive logistics hub reducing product costs and boosting economic efficiency Hiranandani addedHiranandani further said that it is worth noting that the budget has not taken significant action towards uplifting affordable housing a segment crucial for inclusive growth and economic stabilityIn summary the Budget FY26 is a forwardthinking document that lays a comprehensive foundation for growth though certain areas like longterm investment and affordable housing require further attention to fully realise the vision of a prosperous and developed Bharat he addedAnuj Puri Chairman ANAROCK Group said that the Union Budget focused on economic expansion infrastructure development MSMEs futuristic cities and middleclass welfare and brought substantial relief for the middle class It also aims to stimulate rural consumption an essential step toward unlocking Indiarsquos economic potential he addedFrom a real estate perspective the budget delivers both direct and indirect benefits acting as a catalyst for growth However a notable shortfall was the absence of major announcements for the affordable housing sector leaving stakeholders disappointed Despite this the budget overall remains strong and growthoriented with a clear focus on economic development and enhanced consumption Puri saidThe ANAROCK Group chairman further said that the affordable housing sector saw fewer direct benefits the budget is overall progrowth infrastructuredriven and investmentoriented The focus on middleclass relief urban development and connectivity is expected to stimulate real estate demand across various segments making it an overall progressive and impactful budget he addedManju Yagnik Vice chairperson of Nahar Group and Senior Vice President of NAREDCO Maharashtra said The Budget 2025 reaffirms the governmentrsquos commitment to inclusive development economic growth and a strategic focus on increasing consumption For FY26 FM Sitharaman has allocated Rs 1121 lakh crore reaffirming the governments focus on infrastructure development and economic growth The allocation of Rs 15 lakh crore in interestfree loans for capital expenditure and the push for PPPdriven infrastructure projects will enhance urban connectivity and boost development The launch of SWAMIH Fund 2 with Rs 15000 crore is a welcome move to revive stalled housing projects ensuring timely completion and restoring homebuyer confidence The continued emphasis on affordable and midincome housing will further drive demand supporting homeownership aspirations Additionally personal income tax reforms and a higher TDS threshold for senior citizens will improve disposable income positively influencing housing affordability With a fiscal deficit target of 48 per cent for FY25 the budget balances growth and financial prudence These measures collectively strengthen the foundation for a dynamic and resilient real estate marketSunny Bijlani Joint Managing Director Supreme Universal said Budget 2025 Finance Minister Nirmala Sitharaman announced a significant change regarding selfoccupied properties Taxpayers are now allowed to claim the annual value of two selfoccupied properties as nil effectively exempting them from paying tax on notional rental income for both properties Previously only one selfoccupied property could be claimed as taxexempt while additional properties were subject to tax based on deemed rental income even if they were not rented out he addedHe said that the real estate sector is set for significant growth driven by the governments unwavering commitment to infrastructure development With 50000 dwelling units already completed under the SWAMI scheme and another 40000 in progress housing demand is rising The Rs 15000 crore SWAMI Fund 2 will provide essential financial support to stalled projects ensuring timely completion and strengthening market stability he addedHe further said that increased investments in urban mobility utilities and connectivity will enhance residential and commercial developments making cities more liveable and business friendly These strategic reforms and higher infrastructure spending will unlock new investment opportunities propelling longterm growth and reinforcing Indiarsquos vision for sustainable urban expansion Bijlani saidWhile Budget 2025 introduces measures that could indirectly boost the real estate sector by enhancing consumer spending industry experts stress the need for more targeted reforms Key demands include addressing affordable housing granting industry status implementing tax reforms and investing in infrastructuremdashsteps they believe are crucial for driving sectoral growth and strengthening its contribution to the economyEcohing similar sentiments Dhiren Tharwani Director Tharwani Realty said that the governments commitment to develop urban infrastructure through the Rs 1 lakh crore Urban Challenge Fund and capexlinked loans of Rs 15 lakh crore for FY26 this budget offers a promising opportunity to the real estate sectorWe welcome these initiatives that will spur muchneeded growth in city redevelopments and enhancement of existing infrastructure The emphasis on urban renewal is a move in the right direction toward making cities more smart and sustainable and we look forward to joining this transformative journey with innovative futureready developments he addedAshish Bhutani CEO Bhutani Infra said that the Budget 2025 reinforces Indiarsquos commitment to urban transformation and infrastructure growthThe Rs 1 lakh crore Urban Challenge Fund and Rs 15 lakh crore interestfree loans for capex will unlock new opportunities for real estate and city development like Noida The push for PPP projects and the upcoming Investment Friendly Index for states signal a more structured and investorfriendly approach For Noida a thriving commercial hub these initiatives will drive demand attract global investors and accelerate sustainable urban development The new valuation rule for selfoccupied properties boosts real estate sentiment while the hike in the TDS threshold for rent to Rs 6 lakh eases compliance and benefits both landlords and tenants This budget lays a strong foundation for futureready cities making real estate and infrastructure a key driver of Indiarsquos growth story We look forward to leveraging these opportunities to create worldclass commercial spaces Bhutani added