Budget 2025: As the finance Minister tables the budget on 1st February, 2025 the expectations are building by the real Estate Industry too. The upcoming budget presents an opportunity to move the real estate sector towards growth and resilience, said experts
Amid declining real estate activity in the second half of CY 2024, the sector anticipates government measures to revive overall consumption, said Anuj Puri, Chairman – ANAROCK Group
To sustain this positive momentum, it is crucial that the government implements measures to ease the financial challenges faced by homebuyers and developers alike. This could include tax relief, improved access to finance, and incentives to boost liquidity in the market, as per Mohit Agarwal, Business Head, Conscient Infrastructure
The Taxes remain an important component providing benefits to Buyers and salles and hence expectations are rising on some adjustments. The expectations remain on incentivizing and focusing on affordable housing.
Reviving Affordable Housing
- For the real estate sector, key expectations include industry status recognition and a revival of the affordable housing segment, said Puri of ANAROCK Group. Once a promising sector, affordable housing—homes priced under ₹40 lakh—has struggled post-pandemic, with demand and supply shrinking significantly.
2. Increasing incentives for Home Buyers
The industry seeks better tax benefits for homebuyers, particularly a higher deduction limit for home loan interest to boost housing demand said Sudeep Bhatt, Director Strategy, Whiteland Corporation .
As the Union Budget 2025 – 26 approaches, the real estate sector eagerly awaits impactful measures to drive growth and sustainability. With rising housing demand across different locations, tax reliefs for homebuyers and incentives for the housing sector are crucial. Policies promoting sustainable development, infrastructure enhancement will not only help in economic growth but also boost housing demand’ said *Mr. Manik Malik, CFO, BPTP
3.Rationalization of GST rates for under-construction properties and incentives for green and sustainable real estate projects are also likely anticipated. Additionally, policies to enhance liquidity for developers, promote ease of doing business and incorporate private and foreign investments through relaxed FDI norms are crucial. This budget can catalyze the real estate sector’s potential, making it an important element for the country’s economic development and employment generation.”
4.Simplified single-window clearance procedures are necessary to cut down on project delays and related expenses. By meeting these goals, the budget may enable Tier-II cities to become independent centers of growth, making a substantial contribution to India’s urban transformation and generating strong prospects for the real estate industry.”, said *Yashank Wason, Managing Director, Royal Green Realty. The impending budget offers a critical chance to support the real estate industry, especially in Tier-II cities, which are becoming economic development engines. Wason anticipates policies like higher tax deductions on home loan interest and streamlined GST rates across segments to improve housing affordability.
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