Budget 2025-26: Mid-income home sales to gain momentum, say realtors

The Union Budget for FY26, tabled by Finance Minister Nirmala Sitharaman today has some good news for the country’s real estate developers. As sales of mid-income and affordable homes started to falter in 2024, denting the overall home sales numbers for the year, realtors have been asking for measures to address the slide.

While no big-bang announcements were made by the FM for the real estate sector, several measures that are set to come into operation from April 1 are expected to help prospective middle-income homebuyers to take the plunge, feel the industry stakeholders.

According to Niranjan Hiranandani, Chairman, NAREDCO & Hiranandani Group, the Budget sets the stage for transformative growth for the real estate and infrastructure sector. As the Budget aims to incentivise the purchase of a second flat it encourages real estate investments. “Moreover, the introduction of SWAMIH Fund 2.0 seeks to alleviate the burden on constrained homebuyers by delivering stalled projects, while the hike in TDS on rentals up to Rs 6 lakh promises to bolster rental investments,” he says.

The middle class, a crucial driver of demand, stands to benefit immensely from tax incentives that translate their aspirations for an improved quality of life into tangible home-buying prospects. “However, it is worth noting that the Budget has not taken significant action towards uplifting affordable housing, a segment crucial for inclusive growth and economic stability,” says Hiranandani.

According to Pradeep Aggarwal, Chairman, Signature Global (India), the Rs 1 lakh crore Urban Challenge Fund “will play a pivotal role in transforming cities into vibrant growth hubs, ensuring balanced regional development. Additionally, the government's thrust on PPP-driven infrastructure with a structured three-year project pipeline will accelerate urban expansion, unlocking new opportunities for real estate and housing,” says Aggarwal.

Jayant B. Manmadkar, CFO, Brigade Group, says, “While there has not been any specific announcement for the real estate sector, the enhanced focus on UDAAN, which integrates smaller towns into the airline network and boosts tourism, will positively impact the hospitality sector. Additionally, the lowering of personal income tax will ensure higher disposable income, enabling taxpayers to spend more on consumption, including buying homes.”

“By easing the tax burden and enhancing disposable income, this move is set to boost household consumption, savings, and investments, thereby fuelling housing demand and overall economic growth, adds Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com.