Union Budget 2025 Expectations

Mr. Rakesh Reddy - Director, Aparna Constructions

“The 2025-26 Union Budget holds the potential to be transformative for the real estate sector, fostering growth, sustainability, and inclusivity in India’s housing market. Strong policy support is crucial to drive demand and improve overall affordability in the real estate sector. Key priorities for the sector include gaining infrastructure status, streamlining approval processes, enhancing funding access, and rationalizing GST. Additionally, policies should focus on increasing tax benefits for housing loans, reducing long-term capital gains tax on real estate investments, and expanding the scope of affordable housing initiatives.

One of our key expectations is an expansion of the affordable housing segment through increased price caps and enhanced tax benefits for homebuyers. Such measures will further boost demand and support the government’s vision of ‘Housing for All.’ Simplifying the GST structure on under-construction properties and providing clarity on Input Tax Credit policies can greatly improve cost efficiency for developers while making housing more affordable for buyers.

Infrastructure investment in Tier 2 and Tier 3 cities should remain a top priority. Increased allocation for urban infrastructure development will not only facilitate better living standards but also attract private investments to unlock the potential of emerging real estate markets. We also urge the government to introduce financial incentives for adopting green and sustainable building practices. Tax rebates or grants for projects that prioritize renewable energy, water conservation, and energy efficiency would align the real estate sector with India’s commitment to climate goals. Lastly, we seek policies that improve liquidity for developers, such as single-window clearance mechanisms and access to low-cost financing for housing projects. These steps will streamline operations and enable faster project delivery.”