Pune, 02 Feb, 2025
The Union Budget 2025 has introduced key reforms and financial allocations aimed at strengthening the real estate sector. While industry leaders welcome several initiatives, they also highlight the need for further measures to boost housing demand and affordability.
CREDAI Pune Metro President, Mr. Ranjit Naiknavare, on Budget 2025
Mr. Ranjit Naiknavare, President of CREDAI Pune Metro, lauded the continuation of the SWAMIH initiative, stating:
“The SWAMIH Fund I has already enabled the completion of nearly 90,000 housing units by the end of 2025. With the launch of SWAMIH Fund II, an additional ₹15,000 crore has been allocated to facilitate the completion of 1 lakh homes from stalled projects, providing a significant boost to the housing sector.”
However, he noted that the industry had anticipated additional policy measures to further stimulate demand, including increased incentives for affordable housing, GST reductions, and additional income tax benefits.
“A higher cap on home loan interest exemptions, which has remained unchanged for years, and a revised definition of affordable housing—based on minimum dwelling unit size rather than a fixed ₹45 lakh value nationwide—would have provided additional momentum to the market and improved housing affordability,” he added.
Despite these unmet expectations, Mr. Naiknavare emphasized that the budget remains progressive and forward-looking, with a positive impact expected on the real estate ecosystem.
Budget 2025 Reaction by Kapil Gandhi, MD, Sigma One Universal
Echoing similar sentiments, Mr. Kapil Gandhi, Managing Director of Sigma One Universal, appreciated the government’s strong focus on urban development and infrastructure enhancement.
“The creation of new funds amounting to nearly ₹1 lakh crore and a renewed push for infrastructure through PPP projects will enhance urban liveability in cities like Pune and drive long-term growth,” he said.
Additionally, he welcomed key tax reforms, stating:
“The increase in the income tax exemption limit to ₹12 lakh is a major relief for the middle class. Likewise, the hike in rental TDS from ₹2.2 lakh to ₹6 lakh and the removal of notional rent on a second self-occupied property are positive changes. These measures will encourage homebuyers, particularly those looking to invest in additional or second homes, while fostering a positive sentiment in the real estate market.”
A Forward-Looking Budget for Real Estate
While industry leaders acknowledge the positive steps taken in the budget, they also highlight the need for additional reforms to sustain long-term growth in the housing sector. The continued focus on urban infrastructure, affordable housing, and tax relief is expected to contribute significantly to India’s real estate landscape in the coming years.
