Union Budget 2025-26: Real Estate Industry Leaders Share Mixed Reactions
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, has elicited a range of responses from real estate industry leaders. While some welcome the new measures, others express disappointment over missed opportunities.
Union Budget 202526Real EstateAffordable HousingPradhan Mantri Awas YojanaReitReal EstateFeb 01, 2025
The budget, announced on February 1, includes several measures aimed at boosting the sector, but the reactions from industry leaders have been mixed.
One of the key highlights of the budget is the allocation of funds for affordable housing.
The government has increased the allocation for the Pradhan Mantri Awas Yojana (PMAY) to boost the construction of affordable homes.
This move has been widely appreciated by many in the industry, who see it as a significant step towards addressing the housing needs of the economically weaker sections.
However, some industry experts feel that the budget could have gone further.
Mr.
Ravi Ahuja, Chairman of a leading real estate company, stated, 'While the increased allocation for PMAY is a positive step, we were hoping for more comprehensive measures to address the liquidity crunch in the sector.
The lack of emphasis on easing liquidity constraints is a missed opportunity.'
On the other hand, Mr.
Arjun Saravanan, CEO of a prominent real estate firm, expressed optimism.
'The focus on affordable housing is commendable.
It will not only help in creating more jobs but also in uplifting the socio-economic conditions of many families,' he said.
The budget also includes provisions for easing the tax burden on homebuyers.
The government has proposed reducing the stamp duty and registration charges for first-time homebuyers, which is expected to increase demand in the housing market.
This move has been welcomed by many industry leaders.
However, concerns remain regarding the lack of measures to address the issue of unsold inventory.
Mr.
Vikas Arora, a real estate consultant, noted, 'While the reduction in stamp duty is a good step, it doesn’t address the issue of unsold inventory.
The government needs to consider more aggressive measures to clear the backlog of unsold homes.'
The budget also proposes the introduction of a new Real Estate Investment Trust (REIT) framework, aimed at attracting more investment into the sector.
This is seen as a positive move by many, as it could potentially unlock significant capital for real estate projects.
Ms.
Priya Bansal, a real estate analyst, commented, 'The introduction of the new REIT framework is a step in the right direction.
It will help in bringing more transparency and professionalism to the sector, which is crucial for long-term growth.'
Overall, while the Union Budget 2025-26 has several positive aspects for the real estate sector, there are also areas where industry leaders feel more could have been done.
The government’s focus on affordable housing and tax benefits for first-time homebuyers is commendable, but addressing liquidity constraints and the issue of unsold inventory remains a challenge.
In conclusion, the real estate industry is cautiously optimistic about the budget, hoping that the proposed measures will help in reviving the sector and fostering sustainable growth.
Frequently Asked Questions
What is the Pradhan Mantri Awas Yojana (PMAY)?
The Pradhan Mantri Awas Yojana (PMAY) is a flagship scheme launched by the Indian government to provide affordable housing to all by 2022. It aims to ensure housing for all, with a particular focus on the economically weaker sections.
How has the Union Budget 2025-26 addressed the issue of affordable housing?
The Union Budget 2025-26 has increased the allocation for the Pradhan Mantri Awas Yojana (PMAY) to boost the construction of affordable homes. This move is aimed at addressing the housing needs of the economically weaker sections.
What tax benefits have been proposed for first-time homebuyers in the budget?
The budget proposes reducing the stamp duty and registration charges for first-time homebuyers. This is expected to increase demand in the housing market and make home ownership more affordable.
What is the new Real Estate Investment Trust (REIT) framework mentioned in the budget?
The new REIT framework proposed in the budget is aimed at attracting more investment into the real estate sector. It is expected to bring more transparency and professionalism to the sector, which is crucial for long-term growth.
What are the main concerns of the real estate industry regarding the budget?
The main concerns of the real estate industry regarding the budget include the lack of measures to address liquidity constraints and the issue of unsold inventory. Industry leaders feel that more comprehensive measures are needed to fully revitalize the sector.
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