The Union Budget 2025-26 has raised significant expectations within the real estate sector, with industry leaders outlining priorities ranging from tax reforms to incentives for affordable housing and sustainability.
Bhavesh Shah, Joint Managing Director, Today Group
Shah emphasized the need for a 10-15% increase in budgetary allocation toward PMAY, surpassing last year’s ₹79,000 crore, to achieve the “Housing for All” target by 2030. “A thrust on urban regeneration initiatives, policies supporting vertical urbanization, and streamlined single-window clearance systems will reduce project costs and timelines. Raising the interest deduction cap on home loans would provide relief to homebuyers and spur demand,” he said. Shah also highlighted the importance of digitizing land records for transparency and investor confidence.
Parthh K Mehta, CMD, Paradigm Realty
Mehta focused on the luxury real estate sector, advocating for increased tax benefits on home loan interest and reduced GST on construction materials like steel, cement, and fuel. “Simplifying single-window clearance systems will eliminate delays, while further reductions in FSI premiums for Mumbai projects will make high-rise developments more viable,” Mehta added.
Chintan Sheth, CMD, Sheth Realty
Sheth stressed measures to enhance first-time homebuyers’ benefits, such as increased tax deductions on home loan interest and rationalized property tax provisions for under-construction projects. “A robust framework for REIT regulations can boost investments and liquidity while offering retail investors better options,” he said. Sheth also called for expanded PMAY incentives and strategic adjustments to address rising project costs.
Aditya Shah, Director, Mayfair Housing
Shah urged the government to increase the price cap for affordable housing projects to ₹75 lakh and extend benefits under Section 80-IBA. “Complete tax exemption on home loan interest, phasing out stamp duty under a ‘One Nation, One Tax’ vision, and GST reforms with Input Tax Credit inclusion will significantly benefit both affordable and luxury housing,” Shah stated. He also called for tax-free infrastructure bonds to strengthen urban infrastructure and green housing initiatives to foster sustainability.
Hiren Chheda, MD, Ekatva Group
Chheda highlighted the importance of increasing the interest deduction limit for first-time homebuyers and introducing rebates on property taxes. “Simplified tax structures for REIT dividend income can attract more retail participation, while revising affordable housing definitions to reflect current market conditions will rejuvenate the segment,” he noted. He also stressed the need for funds to support urban infrastructure and incentives for green-certified buildings to encourage sustainable construction.
The real estate sector remains optimistic that Union Budget 2025-26 will deliver reforms to bolster housing demand, ease financial burdens on developers and buyers, and foster sustainable growth across residential and commercial markets.
