Union Budget 2025 | Govt should grant industry status to real estate, says Runwal Realty director Saurabh Runwal

Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.

The real estate sector have pinned high hopes on the Union Budget FY 2025-26 documents and are keeping their fingers crossed regarding their expectations from the government's most important financial document of the year.

"As India’s real estate sector stands at a transformative crossroads, the upcoming budget holds the potential to catalyze a phase of unprecedented growth. With the sector’s current valuation of over $477 billion and its trajectory towards a $1 trillion market by 2030, it’s crucial that the budget addresses both immediate challenges and long-term opportunities.

The need for policy measures that enhance liquidity is critical, and this includes reducing long-term capital gains taxes, streamlining REIT regulations, and increasing interest rebates for housing loans. These reforms will drive both domestic and foreign investments, enabling developers to access capital more competitively, and homebuyers to realize their dreams of owning property, especially with the luxury market seeing a 51% growth in demand.

Furthermore, granting real estate industry status is vital. It will not only reduce land acquisition costs but also make financing more accessible, leading to more affordable housing. With land comprising up to 70-80% of costs in major metros, these reforms will directly impact the affordability and scalability of residential projects. In addition to financial measures, the sector urgently requires a workforce that is equipped to deliver on the aspirations of modern India. Upskilling is paramount, particularly in technology integration and quality control, to ensure that the burgeoning demand for smart, sustainable cities is met with precision.

The implementation of modern urban governance frameworks, including streamlining approvals and improving land use policies, will be instrumental in speeding up project timelines and ensuring that urban spaces are well-planned and equipped to support the population growth expected in the coming years.

The upcoming budget presents a golden opportunity to unlock the sector’s full potential and accelerate India’s ambition of becoming a $5 trillion economy, with real estate playing a leading role," said Runwal Realty director Saurabh Runwal.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.