Kolkata: The real estate sector in the state termed the Union Budget 2025 as a boost for the sector but batted for more reforms.
Sushil Mohta, chairman, Merlin Group and the President of Credai West Bengal said that the Union Budget lays the groundwork for sustained economic growth, with several provisions impacting the real estate sector. The increase in the income tax exemption limit to Rs 12 lakh and the higher TDS threshold on rent (from Rs 2.4 lakh to Rs 6 lakh) are expected to enhance disposable income, drive housing demand, and boost overall consumption.
“The allocation of Rs 1 lakh crore under the Urban Challenge Fund will promote better urban planning, paving the way for infrastructure-driven real estate growth. Additionally, the Rs 15,000 crore SWAMIH Fund 2 is a much-needed initiative to accelerate stalled housing projects, ensuring liquidity in the sector. The expansion of the UDAN scheme will further improve regional connectivity, opening up new real estate markets in Tier 2 and Tier 3 cities,” he added.
According to Mohta, the sector had anticipated additional measures, particularly in affordable housing. Key industry demands, such as higher home loan interest exemptions, a revision in the affordable housing definition based on dwelling unit size instead of a uniform Rs 45 lakh value, and industry status for real estate, remain unaddressed. These reforms could have significantly boosted housing affordability and investment inflows.
Saket Mohta, MD, Merlin Group termed the introduction of a credit card facility for micro-enterprises and support for startups as welcome steps. “However, we had hoped for industry status for the real estate sector, which would have facilitated greater investment,” he said.
Mahesh Agarwal, Managing Director, Purti Realty said that the decision to allow the annual value of a self-occupied property to be considered nil, without stringent conditions, is a much-needed relief for homeowners. “Additionally, the Rs 1 lakh crore Urban Challenge Fund for ‘Cities as Growth Hubs,’ ‘Creative Redevelopment of Cities,’ and ‘Water & Sanitation’ will foster urban transformation and improve quality of life,” said Agarwal.