Budget 2025–26 To Transform India's Commercial Real Estate Sector

Mumbai: The 2025-26 budget is set to reshape India's commercial real estate landscape, driving growth through tax reforms, infrastructure development, and sustainability initiatives.

Talking to Bizz Buzz, Vijay Kamboj, FounderBric X Infra says, "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. The focus on smart cities, metro projects, and business hubs in tier 2 and 3 cities will fuel demand for IT parks, co-working spaces, and industrial zones. Shared office spaces, especially green-certified Grade A offices, will thrive due to hybrid work trends and sustainability incentives." Additionally, lower interest rates and improved credit access will enhance investment opportunities in retail, tech hubs, and manufacturing spaces.

While challenges like regulatory delays and inflation persist, the budget's pro-growth measures promise a dynamic future for commercial real estate, fostering innovation, efficiency, and large-scale development across urban and emerging markets.

Key initiatives in the Union Budget 2025-2026 have the potential to drastically alter the commercial real estate market in India. Lower personal income tax rates are expected to increase disposable earnings and, consequently, the demand for retail and office space.

Abhishek Raj, Founder & CEO of Jenika Ventures says, "This optimistic market sentiment is highlighted by the 3.3 per cent post-budget spike in the Thrifty Realty Index. Additionally, to draw in businesses and investors, the government has committed to creating "plug and play" industrial parks in or close to 100 cities in partnership with states and the private sector."

This has increased demand for commercial real estate, including coworking spaces and flexible offices. However, players in the infrastructure industry are concerned that the slight rise in capital expenditure to Rs11.2 trillion could not have a substantial positive impact on the industry. The budget's emphasis on boosting consumer spending power and assisting different industries should, all things considered, boost economic expansion and have a favorable effect on the commercial real estate market.