Real estate players are hoping that Union Budget 2025 will bring in more reforms that will help enhance housing demand. They are looking for improved availability of housing finance and further tax reforms, including a reduction in GST, to make housing more affordable. Meanwhile, there is also a hope that the government would focus on the commercial real estate segment as well.
“Increasing the interest amount limit for home loans under tax exemption from the present amount of Rs 2 lakh to at least Rs 5 lakh would make a great difference for the middle income homebuyers, especially in times like this since the housing sector would benefit as more people would be looking to buy houses. Improving the availability of real estate finance and introducing GST input credits could indeed work towards achieving the goal of reducing the cost of owning a house, which has become important in the wake of cities' annual urban housing prices inflation of about 6-8 per cent,” said Harshvardhan Tibrewala, MD, Vida Realty.
Real estate players also expect that the government earmarks at least Rs 10 lakh crore for infrastructure development, as part of the envisaged Rs 100 lakh crore investment plan over five years, which will enhance connectivity and create new corridors of growth across the country.
The Indian real estate sector is poised for significant growth, with projections indicating it will exceed $4.8 trillion by 2047, contributing 18 per cent to the projected $26 trillion GDP, according to a joint report by EY and CREDAI. In 2024, the sector showed remarkable growth, with Mumbai city alone experiencing an 11 increase in housing sales.
“We expect the budget 2025 to introduce measures that will further strengthen the real estate industry. Increasing tax slabs, particularly for individuals earning Rs 12-15 lakh annually, will enable more citizens to invest in home ownership. Additionally, revising tax regulations for developers and stabilizing raw material prices will help manage construction costs and maintain housing affordability. These initiatives will not only boost the real estate sector but also contribute to India’s broader economic and housing goals, fostering sustainable growth nationwide,” pointed out Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra.
Faster clearance and smoother sanctioning of projects is also one of the demands from the real estate players that will help in fast-tracking commercial real estate projects. “One major improvement could be introducing single-window clearance systems to fast-track project approvals. It’s a simple step that could save time and cut delays for commercial real estate projects. Another big opportunity lies in making it easier for foreign investors to invest in mixed-use and Grade-A office spaces. Tax breaks for green buildings and smart urban projects can attract global investors and elevate the region’s status as a commercial hub. With strategic government support, real estate can boost job creation and contribute to India’s $5 trillion economy vision,” Ashish Bhutani, CEO, Bhutani Infra.
