Real estate hails budget boost but calls for industry status

West Bengal real's estate industry leaders welcomed the Union Budget 2025-26 for its growth-oriented measures for realty, particularly tax reliefs and a special fund for stalled projects, while also pointing out missed opportunities such as industry status for real estate and a national rental housing policy.

Saket Mohta, Managing Director of Merlin Group, hailed the budget as "growth-oriented and development-focused," emphasising its positive impact on real estate.

"The revised tax slabs will enhance disposable income, boost household consumption, and create room for housing sector growth," he said.

He also appreciated the exemption of income tax up to Rs 12 lakh and the increase in the TDS threshold on rent from Rs 2.4 lakh to Rs 6 lakh, which he said would drive demand. However, he expressed disappointment over the absence of industry status for the real estate sector.

Sidharth Pansari, Managing Director of Primarc Group and President of CREDAI Bengal, termed the budget a "progressive roadmap" for 'viksit (developed) Bharat' and 'aatmanirbhar (self-reliant) Bharat'.

"The Rs 1 lakh crore Urban Challenge Fund and Rs 15,000 crore SWAMIH Fund for stalled projects will revitalise the real estate sector, ensuring timely project completions and increased housing supply," he noted.

Pansari highlighted major infrastructure investments, including highway expansion, regional connectivity, and greenfield airports, as key enablers for urban expansion and real estate development.

"With PPP-driven infrastructure projects and real estate taxation reforms, this budget lays a strong foundation for sustainable growth," he added.

Purti Realty also applauded the budget for advancing homeownership and infrastructure.

"We, at Purti Realty, commend the government's progressive stance in simplifying tax benefits for self-occupied properties in this year's budget. The decision to allow the annual value of a self-occupied property to be considered nil, without stringent conditions, is a much-needed relief for homeowners. Additionally, raising the tax exemption limit to Rs 12 lakh empowers the middle class, the backbone of India's housing market, by enhancing disposable income and encouraging homeownership," Mahesh Agarwal, Managing Director, Purti Realty said.

Rishi Jain, Managing Director of Jain Group, said, "The Rs 1 lakh crore Urban Challenge Fund will boost investments, infrastructure, and redevelopment in cities, turning them into growth hubs. Integrating hospitality with infrastructure and promoting top tourist spots will drive tourism, while expanding UDAAN to 120 more locations will boost local economies and create jobs.

The revised tax system and higher disposable income will make homes more affordable, increasing demand for real estate and driving economic growth." Sanjay Jain, Managing Director of Siddha, commented, "The Budget 2025 empowers the middle class by increasing disposable income, providing additional cash flow for aspirational homebuyers. This will boost consumer spending, stimulate the housing sector, and open new opportunities for families to achieve homeownership." Shishir Baijal, Chairman and Managing Director of Knight Frank India said, "The reduction in the income tax burden, ensuring no tax for income up to Rs 12 lakh, will fundamentally increase disposable incomes and stimulate demand," he said.

He welcomed the Rs 15,000 crore allocation for the SWAMIH Fund and the removal of tax on deemed rent for two self-occupied properties.

Baijal also highlighted the increased capital expenditure outlay of Rs 11.21 lakh crore, up from Rs 11.11 lakh crore in FY25, as a key driver for infrastructure development.

However, he pointed out the absence of incentives for affordable housing and a national rental housing policy, which he hoped would be addressed in the future.