Key Real Estate Reforms Anticipated from 2025-26 Budget: Insights from Industry Experts

The Union Budget 2025-26 is set to be presented by Finance Minister Nirmala Sitharaman on February 1. Ahead of the budget, all eyes are on the potential reforms and policy measures that could strengthen the country's real estate sector. The sector, a significant contributor to the nation's GDP and employment, has seen notable growth in recent years, driven by rising housing demand across both urban and rural areas. With the increasing aspirations of the middle class and the growing demand for affordable and luxury housing, experts across the industry are hopeful that the upcoming budget will introduce strategic reforms aimed at sustaining this progress. As the government continues to prioritize economic growth, infrastructure development, and job creation, industry leaders share their insights on the key areas that need attention to ensure a thriving real estate market in the year ahead.

Industry Experts Opinion

Mr. Mohit Malhotra, Founder & CEO, NeoLiv

 "As the Union Budget 2025-26 approaches, the real estate sector is eagerly awaiting key policy announcements that can fuel growth, development, and affordability. With housing demand expected to rise across both urban and rural areas, experts stress the need for targeted tax relief for homebuyers and incentives for the housing industry. There's also a call for policies that promote sustainable urban development and enhance infrastructure. A well-balanced budget that encourages investment specially in upcoming tier 2 cities ensuring affordability could drive economic growth and significantly boost housing demand. With the right measures, this budget brings hope to the growing middle class to own a home."

Mr. Gaurav K Singh, Founder and Chairman- Womeki Group

 "The Indian real estate sector is a vital contributor to the GDP. The upcoming budget will focus on various measures to boost growth, affordability, and sustainability. The industry is expecting policies promoting affordable housing, rationalisation of GST, and incentives to promote green real estate. For Delhi NCR, infrastructure development and smart city initiatives remain key. Better road networks, metro expansion, and seamless connectivity to Delhi and surrounding areas will further enhance the region's position as a top real estate investment destination. The growing commercial and luxury residential segments highlight the need for reforms which enable ease of doing businesses and streamlined approvals. The real estate market will reach new heights if the upcoming budget addresses these areas, attracting domestic and international investors. With supportive policies, Delhi NCR is poised to remain at the forefront of India’s real estate growth."

Mr. Madhur Gupta, CEO, Hero Realty

"As the Union Budget 2025 approaches, we are optimistic that the government will introduce measures to propel growth in the real estate sector further. We advocate for increasing the tax rebate on housing loan interest to a minimum of ₹5 lakh. This initiative would provide substantial relief to homebuyers, easing their financial burden and encouraging greater investment in the real estate sector. Industry experts have echoed this sentiment, emphasizing that the current ₹2 lakh rebate is insufficient given the rise in property prices and construction costs. Additionally, we urge the government to implement a single-window clearance mechanism. This new system is critical to expediting the multi-approval process, ensuring greater efficiency and transparency. Such a reform would be transformative, boosting the ease of doing business and attracting further investments into the industry."

Mr. Vivek Singhal, CEO, Smartworld Developers

“As the Union Budget 2025-26 approaches, the real estate sector remains hopeful for forward-looking reforms that can amplify growth and reinforce its role in India’s economic progression. Increasing the tax deduction limit for housing loan interest under Section 24(b) to ₹5 lakh would align with the rising aspirations of homebuyers while addressing evolving market conditions. Similarly, introducing a single-window clearance mechanism could streamline processes, expediting project approvals and enhancing operational efficiency. Granting 'industry status' to real estate is another vital step that would unlock greater access to institutional capital, stimulating growth across the entire value chain, including over 200 interdependent industries. The rationalization of GST rates and an optimized input tax credit framework for construction materials are equally crucial to mitigate costs and maintain the competitiveness of premium projects. We also encourage strategic incentives to boost investments in advanced infrastructure, laying the foundation for India’s transformation into a global hub for luxury living and modern urban development. These progressive measures, supported by the positive momentum from last year’s budget, would establish real estate as a cornerstone in achieving India’s vision of becoming a developed economy by 2047.” 

Mr. Viren Mehta, Director, ElitePro Infra says

 "The real estate industry is gearing up for the upcoming budget for new opportunities and growth  potentials. The upcoming budget is a que for the industry to revive housing demand conditions. For homebuyers, tax reliefs and simplified tax systems can be helpful especially for first time homebuyers. Key priorities of the upcoming budget include increasing the income tax deduction limit for home loan interest under Section 24(B), incentives for green building projects, and rationalisation of GST rates for under - construction properties. Boosting the affordable housing segment via enhanced tax sops and rental housing schemes are crucial to address urban housing affordability. Additionally, focus on infrastructure development, implementation of digital land records, and incentives for REITs and InvIts can attract better investment. There should also be relaxed FDI norms to encourage global investments. With targeted initiatives, the budget can not only revive housing demand, but also strengthen its role as a significant contributor to economic growth."

Mr. Yashank Wason, Managing Director, Royal Green Realty said

"The impending budget offers a critical chance to support the real estate industry, especially in Tier-II cities, which are becoming economic development engines. In order to draw investments and spur urbanization in cities like Indore, Bahadurgarh, Sonipat and others, we want policies that support different  housing segment, infrastructure growth, and improved connectivity. We anticipate policies like higher tax deductions on home loan interest and streamlined GST rates across segments to improve housing affordability. Simplified single-window clearance procedures are necessary to cut down on project delays and related expenses. By meeting these goals, the budget may enable Tier-II cities to become independent centers of growth, making a substantial contribution to India's urban transformation and generating strong prospects for the real estate industry."

Mohit Agarwal, Business Head, Conscient said

 "We hope the upcoming Budget will introduce initiatives aimed at boosting demand within the residential real estate market, a vital pillar of India's economic growth. The real estate sector, contributing nearly 8% to the nation's GDP, plays a key role in job creation and driving growth across multiple industries. To sustain this positive momentum, it is crucial that the government implements measures to ease the financial challenges faced by homebuyers and developers alike. This could include tax relief, improved access to finance, and incentives to boost liquidity in the market. By prioritizing these areas, the 2025-26 Budget can further strengthen the real estate sector's contribution to India’s overall economic development and ensure continued growth and stability."

Mr. Manik Malik, CFO, BPTP 

 "As the Union Budget 2025 - 26 approaches, the real estate sector eagerly awaits impactful measures to drive growth and sustainability. With rising housing demand across different locations, tax reliefs for homebuyers and incentives for the housing sector are crucial. Policies promoting sustainable development, infrastructure enhancement will not only help in economic growth but also boost housing demand.Additionally, more real estate investments, particularly in the housing sectors, can be stimulated by extending the benefits of capital gains and allowing for greater flexibility in reinvestment standards. In addition to accelerating sector growth, a forward-thinking policy framework with these measures will support infrastructure development and job creation, both of which are essential for India's economic future."

Mr. Santosh Agarwal, CFO & Executive Director, Alphacorp

 "The year 2024 has been defined by an undeniable shift towards luxury living, with real estate projects setting new standards for upscale residences. This surge in demand for luxury and ultra-luxury homes reflects a growing appetite for properties that offer both opulence and long-term investment potential. The upcoming Union Budget holds great promise for further fueling this growth. We anticipate policy measures that will enhance affordability, provide tax incentives, and stimulate infrastructure development, enabling us to meet the aspirations of high-net-worth individuals. These strategic interventions are expected to not only strengthen the luxury housing market but also drive the overall growth and resilience of the real estate sector in the coming year."