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How Union Budget 2025 could be a ‘game changer’ for Bengaluru's property market
Budget 2025: According to industry leaders in Bengaluru, this year's budget focuses on infrastructure development and urban rejuvenation
Union Budget 2025 is likely to prove a 'game changer' for Bengaluru's real estate market, which will witness significant growth due to the measures announced by Finance Minister Nirmala Sitharaman.
With the city continuing to lead India's IT, experts believe the budget will play a pivotal role in the real estate and coworking sectors.
According to industry leaders in Bengaluru, this year's budget focuses on infrastructure development and urban rejuvenation which will boost the real estate market in the city.
Ramani Sastri, Chairman & MD of Bengaluru-based Sterling Developers, in a statement, said that the government’s concentrated efforts on infrastructure development promise to significantly enhance housing demand.
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"It will also benefit around 250 ancillary industries, generating numerous job opportunities and bolstering overall economic growth," he added.
According to him, the establishment of the India Infrastructure Fund and emphasis on Public-Private partnerships for infrastructure in the budget is also a game-changer for the real estate industry.
"The establishment of an Urban Challenge Fund of ₹1 lakh crore will fuel the ongoing momentum in rebuilding urban infrastructure and drive greater demand for real estate in urban and semi-urban areas," he said.
Tax relief for homeowners
Another highlight of Budget 2025 according to Sastri is the proposed change that allows taxpayers to claim the annual value of two self-occupied properties as zero.
This will provide significant tax relief, reduce compliance burdens, and encourage homeownership, making it more affordable for middle-class families.
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"Also, the change announced in Budget 2025, allowing taxpayers to claim the annual value of two self-occupied properties as zero, will provide significant tax relief, reduce compliance burdens, and encourage homeownership by making it more affordable for middle-class families, without having to pay income tax on notional rental values of self-occupied homes," he added.
Sastri said the budget could have also offered a degree of relief to first-time homebuyers to stimulate the real estate sector.
The coworking sector ready for growth, says expert
Manas Mehrotra, Founder of 315Work Avenue, a coworking firm with a presence in Bengaluru, Pune, and Mumbai, said that the impact of the budget’s provisions would have on the commercial real estate sector.
Mehrotra emphasised that the government's focus on transforming cities into growth hubs would create a massive boost for the coworking industry.
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"With corporates and MNCs keen on setting up and expanding office establishments in high-growth metros, the coworking sector will benefit hugely from this initiative," he added.
Transformation of tier-2 cities as tech hubs
Lalit Ahuja, CEO of ANSR said that the proposed framework for expanding Global Capability Centres into tier-2 cities marks a strategic pivot in India’s tech evolution.
"With 80 per cent of global firms yet to establish GCCs in India, this initiative unlocks tremendous potential for transforming India’s attractiveness as the global GCC capital, while creating millions of skilled jobs across the country's emerging urban centres," he added.
As per Mehrotra, the push for Global Capacity Centres in tier-2 cities will boost overall real estate investment in these areas, making them a perfect centre to boost major infrastructure.
