Reaction of Mr. Rakesh Reddy, Director, Aparna Constructions on Union Budget 2025

New Delhi, February 01, 2025: FY26 budget underscores the government’s commitment to infrastructure-led growth, with a strong emphasis on urban transformation and public-private partnerships. Financial impetus like the ₹1 lakh crore Urban Challenge Fund and the ₹1.5 lakh crore interest-free loan to states for infrastructure development will transform urban landscapes and boost real estate demand. Interestingly, the budget also brings in some relief for mid-income and affordable home buyers through the SWAMIH Fund. The much anticipated tax reforms for the mid income groups will further increase spending potential and drive home buying in the country.

While these measures are welcome, several key industry expectations for the real estate sector remain unaddressed. Granting industry status to real estate, streamlining approval processes, and enhancing liquidity support for developers were essential priorities which would have gone a long way in accelerating real estate growth. Additionally, rationalization of GST on under-construction properties, reduction in long-term capital gains tax on real estate investments, and increased tax benefits for homebuyers would have significantly improved affordability and investment sentiment.