The real estate industry is ablaze with anticipation for revolutionary policies as the Union Budget approaches. As a major employer and one of the biggest contributors to India’s GDP, the sector looks forward to decisive action to tackle important issues. Initiatives that lower housing costs, streamline tax laws, and increase investment in the industry are anticipated by stakeholders.
Here are the opinions of prominent figures in the industry regarding the changes they anticipate this year.
“The real estate industry is hopeful about reforms that can serve as growth catalysts and improve operational efficiency as we approach the upcoming budget,” says Mr. Pradeep Aggarwal, Founder & Chairman of Signature Global (India) Ltd. Homebuyers may benefit greatly from raising the current tax exemption limit on housing loans to ₹5 lakhs in order to reflect rising real estate and construction costs. Millions of prospective homeowners would benefit directly from this action, which would also increase demand in the industry.
Giving real estate industry status would be equally revolutionary and could revitalize more than 200 related industries. Such acknowledgment would strengthen the sector’s standing as a pillar of the Indian economy by promoting job creation, facilitating skill development, and increasing economic activity.
A pivotal role in India’s transition to “Viksit Bharat 2047” is anticipated for the real estate sector. By lowering developers’ tax obligations, strategic reforms like changes to the GST input tax credit rules may stabilize real estate values and increase housing accessibility. Furthermore, providing a ₹5 lakh subsidy for housing loans up to ₹1 crore would provide urban and semi-urban homebuyers with vital financial support.
The government’s “housing-for-all” goal would be strengthened and in line with changing market dynamics if the definition of affordable housing were expanded to include homes up to ₹1 crore. If put into practice, these reforms have the potential to unleash enormous potential, driving the industry toward sustainable growth and making a substantial contribution to the country’s development objectives.”
Mr. Akash Khurana, President and CEO, Krisumi Corporation, says, “As the Union Budget for 2025 approaches, the government, with its view to push growth, is anticipated to introduce a slew of reforms which may boost economic activity and bring efficiency to different sectors, including real estate.
The real estate sector, being one of the largest contributors to the GDP, could serve as a catalyst in augmenting growth. Since the tax deduction on housing loans has remained stagnant at ₹2 lakh per annum, it is imperative for the government to increase the threshold to ₹5 lakh. This will propel the demand for housing further.
We also anticipate the government to continue its thrust on infrastructure development, as it has a multiplier impact on the economy. With the government’s focus on sustainable development, some kind of incentive for green and eco-friendly housing could boost the supply of sustainable units.”
Mr. Sahil Agarwal, CEO, Nimbus Group, says, “The upcoming budget holds significant importance as it will be the first full-year budget of the Modi 3.0 government. We anticipate major announcements aimed at benefiting the real estate and infrastructure sectors, which are critical growth engines for the economy and support numerous allied industries.
One key area of focus should be the rationalization of taxes and duties levied on homebuyers, which in many states exceed 12% of a property’s value. In the previous budget, the finance minister urged state governments to address this issue, but significant progress has yet to be made. We hope this budget includes provisions to streamline these charges and provide much-needed relief to homebuyers. Additionally, we urge the government to revisit the long-term capital gains (LTCG) tax on real estate and consider providing relief in this area.
Steps toward GST reforms for the real estate sector are also necessary to make it a more attractive investment option. Furthermore, increasing the tax deduction limit under Section 24(b) for home loan interest, currently capped at ₹2 lakh per annum, to at least ₹5 lakh would provide substantial financial relief. This is particularly relevant for homebuyers in metropolitan cities, where high property prices necessitate large home loans. Such a move could boost demand and promote homeownership.
Introducing industry status for the real estate sector is another long-pending demand. This would enable developers to access capital at more competitive rates, making housing more affordable for buyers.
The government should also consider increasing budgetary allocations for infrastructure development, including metro networks, multimodal corridors, and last-mile connectivity projects. These investments would not only improve urban mobility but also stimulate the growth of commercial real estate in metro cities and their peripheral areas, fostering economic activity and attracting investment.
Overall, a balanced approach in the budget—rationalizing taxes, incentivizing homebuyers, and strengthening infrastructure—would play a crucial role in driving growth in the real estate and infrastructure sectors while contributing to broader economic progress.”
