Union Budget 2025: What did the realty sector get from the budget, and how happy are the real estate players

Union Budget 2025: The Urban Challenge Fund of Rs 1 lakh crore is a transformational step towards developing future-ready cities, which can make them vibrant economic centers.

Union Budget 2025: Finance Minister Nirmala Sitharaman presented the Budget 2025-26 in Parliament and made some announcements for the realty sector along with many sectors. In this, a push of Rs 1 lakh crore was announced for urban infrastructure. Along with this, measures to boost clean energy and urban infrastructure have been announced. Some real estate developers and their management have been talked to about how happy or disappointed the realty sector players are with this budget.

Madhur Gupta, CEO, of Hero Realty said.."The government's latest budgetary allocations, particularly the Rs 15,000 crore SWAMIH Fund 2, will provide a much-needed boost to the real estate sector by completing stalled projects and restoring homebuyers' confidence. The Rs 1 lakh crore Urban Challenge Fund is a transformational step towards developing future-ready cities, making them vibrant economic hubs. Additionally, the Rs 1.5 lakh crore outlay for PPP infrastructure projects will enhance urban connectivity and drive real estate demand. These measures collectively strengthen the growth of the sector and align with India's vision of sustainable urban development."

Yatish Wahal, Director, of M3M India said, “We applaud Finance Minister Nirmala Sitharaman for presenting a visionary Budget 2025 that prioritizes infrastructure development and urban expansion, especially in tier 2 and 3 cities. The UDAN scheme will prove to be a game-changer, enhancing connectivity and unlocking the economic potential of emerging regions. In addition, the national framework for global capability centers in tier 2 cities will strengthen talent availability and industry collaboration, thereby fostering a strong investment climate. With India maintaining its position as the fastest-growing major economy, these structural reforms will accelerate real estate growth, boost private sector participation, and empower the middle class, thereby further increasing their spending power. M3M India is committed to contributing to this transformational journey towards a ‘Developed India’.”

Manik Malik, CFO, of BPTP, said that for middle-class families in India, the construction of 50,000 housing units under the special window for mid-income housing and the projected delivery of additional 40,000 units in 2025 is a major milestone. These initiatives help home buyers regain their confidence by reducing the combined financial stress of rent and EMIs. In addition, the Urban Challenge Fund of Rs 1 lakh crore, with Rs 10,000 crore set aside for FY 2025-2026, has the potential to transform our cities into vibrant hubs of growth. This significant investment in urban infrastructure will result in cities becoming more liveable and attractive.

Vikas Garg, Joint Managing Director, Ganga Realty, said that the mega tax relief exempting income up to Rs 12 lakh from tax is a big change for middle-class families. This increased disposable income will empower first-time homebuyers, making home purchases even easier and increasing demand in the sector.

Saransh Trehan, Managing Director, Trehan Group, said that the much-needed tax relief, especially for the salaried class, has been provided with tax exemption on income up to Rs 12 lakh. This move will significantly increase disposable income, making it more feasible for first-time homebuyers to own a home.