As the Union Budget 2025 approaches, the real estate sector is eagerly anticipating measures to boost growth, particularly in affordable housing, and improve overall market conditions.
Key Expectations for Real Estate:
- Higher Tax Deductions:
Industry leaders are requesting an increase in the tax deduction limit for home loan interest payments from ₹2 lakh to ₹5 lakh. This move could make homeownership more affordable for buyers. - Infrastructure Status for Housing:
Granting infrastructure status to the housing sector could lower borrowing costs for developers and enhance financing options, leading to more housing projects. - Reintroduction of CLSS under PMAY:
The revival of the Credit-Linked Subsidy Scheme (CLSS) is being sought to assist first-time homebuyers. Additionally, releasing centrally controlled land for affordable housing is being encouraged. - Affordable Housing Price Cap Adjustment:
The current ₹45 lakh cap on affordable housing is seen as too low for cities like Mumbai. Adjusting this cap to align with market rates would make it more effective. - Tax Benefits for REITs and Green Buildings:
Offering tax incentives for Real Estate Investment Trusts (REITs) and promoting environmentally friendly buildings could attract investors and encourage sustainable practices. - Recognition of Industry Status:
Granting industry status to real estate would help developers access cheaper loans, reducing construction costs and benefiting homebuyers.
Real estate contributes approximately 7% to India’s GDP, and these measures could strengthen the sector, drive economic growth, and revitalize the residential market in 2025. A focus on affordable housing and infrastructure is expected to boost demand and support long-term growth in the industry.
