With Finance Minister Nirmala Sitharaman all set to table the Union Budget 2025 in Lok Sabha on February 1, the real estate segment is betting on industry status for the sector, incentives for affordable housing and sops for sustainable development. The real estate industry is hoping for transformative measures in the form of incentives and regulatory push to fuel infrastructure and economic development in tier-II cities. This, according to Colliers India, can help real estate directionally in achieving the ambitious target of reaching $1 trillion by 2030. “Budget 2025 is expected to build cornerstones and drive the next phase of elevated growth in Indian real estate. Policy introduction to enhance India’s competitiveness on the global stage is likely to be a focus area. In fact, strong commitment in addressing both immediate and long-term challenges in a rapidly evolving economic landscape will continue to provide a growth blueprint for the next few years,” stated a report by Colliers.
The industry saw a strong momentum throughout the last year with 2024 marking the third consecutive year of record office leasing at 66.4 million sqft across the six top cities, up 14 per cent YoY, Colliers said. Further, residential sales as well as industrial & warehousing space take-up were also close to all-time high. Institutional investments in Indian real estate too touched $6.5 billion inflows in 2024, marking a 22 per cent increase from the previous year. Colliers maintained that all real estate asset classes are expected to perform well in 2025 as well, supported by the budgetary announcements.
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Badal Yagnik, Chief Executive Officer, Colliers India, said, “Accordance of ‘industry’ status to real estate has been a longstanding ask, and experts will be keenly monitoring related developments in the upcoming budget. Infrastructure augmentation is likely to remain at the focal point of long-term growth vision. Significant improvement in transit-oriented-development and logistics efficiency is particularly desirable for equitable growth dispersion. Additionally, seamless integration and coordinated efforts from various government & regulatory bodies and private sector will be pivotal in the ongoing transformation of smaller cities and emerging growth centers into sizeable economic corridors of the future.”
Residential real estate to be the key focus area
Homebuyers and developers are looking forward to further impetus from the government in the upcoming Budget.
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