Pune: The Union Budget 2025-26 has introduced significant measures aimed at accelerating infrastructure development and real estate growth. With ₹1.5 lakh crore in interest-free loans for state capital expenditure and the ₹1 lakh crore Urban Challenge Fund, the government has reinforced its commitment to urban transformation and economic expansion.
Industry leaders view this as a game-changer for public-private partnership (PPP) projects, ensuring better quality, timely execution, and increased private sector participation.
Shashank Paranjape, Managing Director, Paranjape Schemes (Construction) Ltd said, "The Urban Challenge Fund in the 2025 budget is a game-changing initiative for the real estate sector. By promoting ‘Cities as Growth Hubs,’ ‘Creative Redevelopment of Cities,’ and improving ‘Water and Sanitation’ infrastructure, this policy will accelerate real estate development, attract investments, and foster sustainable, future-ready urban spaces. This forward-thinking move will not only enhance city infrastructure but also elevate real estate values, making urban living more efficient and aspirational."
Ujwal Kunte, Founder and Managing Director, CQRA said, "The government's strong emphasis on PPP projects in Budget 2025, supported by ₹1.5 lakh crore in interest-free loans for state capital expenditure and the ₹1 lakh crore Urban Challenge Fund, marks a significant shift in India's infrastructure landscape. This initiative not only ensures higher-quality and timely project execution but also encourages private sector involvement, fostering innovation and paving the way for world-class urban development and smarter cities."
Ajay Agrawal, Managing Director, BramhaCorp Ltd: "The Union Budget 2025-26 introduces crucial strategies to fast-track infrastructure growth and strengthen the real estate sector. With substantial financial support and innovative policies, it underscores the government’s commitment to sustainable development and economic expansion. These measures will play a vital role in modernizing infrastructure, revitalizing the real estate market, and unlocking long-term growth opportunities."
Anuj Puri, Chairman, ANAROCK Group, noted that while the budget delivers both direct and indirect benefits for real estate, the affordable housing segment did not receive the expected focus.
