The Union Budget 2025–26 aims to transform India’s commercial real estate sector with tax incentives, infrastructure expansion, and regulatory reforms. Experts highlight GST simplifications, lower interest rates, and rising coworking space demand. While concerns over capital expenditure persist, the budget’s pro-growth measures are expected to drive investment and innovation.
The Union Budget 2025–26 strategically boost India’s commercial real estate sector with tax reforms, infrastructure development, and investor-friendly policies. The budget to foster growth introduces simplified GST, corporate tax adjustments, and property tax incentives to enhance property transactions and attract institutional investors.
“Simplified GST, corporate tax, and property tax regimes are expected to boost property transactions, attract institutional investors, and ease FDI regulations, unlocking capital flow for developers,” says Vijay Kamboj, Founder of Bric X Infra. He emphasizes that the government’s focus on smart cities, metro expansion, and business hubs in Tier 2 and 3 cities will fuel demand for IT parks, coworking spaces, and industrial zones.
A significant highlight is the push for sustainable office spaces, particularly green-certified Grade A offices, as hybrid work trends reshape the workforce. With lower interest rates and improved credit access, investment in retail, technology hubs, and manufacturing spaces is expected to surge, further strengthening the real estate sector.
The budget also prioritizes “plug-and-play” industrial parks in collaboration with states and private enterprises. “This optimistic market sentiment is highlighted by the 3.3 per cent post-budget spike in the Thrifty Realty Index,” notes Abhishek Raj, Founder & CEO of Jenika Ventures. These initiatives are expected to attract businesses and investors, boosting the demand for flexible office solutions and commercial leasing.
Despite the positive outlook, industry players remain cautious about the modest capital expenditure increase to ₹11.2 trillion. Concerns persist over whether this rise will significantly impact the sector’s long-term growth. However, the budget’s emphasis on consumer spending power and sectoral assistance suggests a ripple effect that could stimulate economic expansion, ultimately benefiting commercial real estate.
With coworking and flexible office spaces gaining momentum, the budget’s strategic measures position India’s commercial real estate sector for sustained growth, innovation, and large-scale development across urban and emerging markets.
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