Madhusudan G., CMD, Sumadhura Group, Shares Real Estate Market Outlook

Budget 2025’s personal income tax relaxation enhances middle-class liquidity, driving consumption and boosting housing demand. The removal of restrictions on owning two self-occupied properties without tax implications and the higher TDS exemption threshold on rental income (₹6 lakh) will spur fresh residential investments. Additionally, the government’s push for manufacturing under PM Gati Shakti, along with incentives for MSMEs, startups, and clean-tech sectors, will generate employment and income growth, fueling demand across residential, commercial, and warehousing segments. The expansion of Global Capability Centers (GCCs) has been prioritized, with a national framework to promote their growth in Tier-II cities. With GCCs occupying over one-third of India’s Grade A office stock and projected to drive 40-50% of leasing activity in 2025, this initiative will foster inclusive economic growth. Furthermore, strengthening warehousing and industrial real estate will enhance supply chain efficiency, supporting India’s vision of becoming a global manufacturing powerhouse.