Want to invest in real estate? Budget 2025 might hold the key!
Explore the budget expectations for the real estate industry to stay updated and seize emerging opportunities.
As the Union Budget 2025-26 approaches, stakeholders in India's real estate sector are expressing key expectations to stimulate growth and address prevailing challenges.
The real estate sector, after experiencing strong success, is now facing challenges as housing sales in India's prime residential markets dropped by 26 per cent across eight major cities during the October-December period of 2024.
Therefore, a primary demand is the revision of the affordable housing price cap. Industry leaders advocate increasing the cap from the current Rs 45 lakh to Rs 70 lakh in metropolitan areas and to Rs 50 lakh in other cities, aligning with rising property costs and making affordable housing more accessible.
Enhancing tax incentives for homebuyers is another significant expectation. There's a call to raise the home loan interest deduction limit under Section 24(b) from Rs 2 lakh to Rs 5 lakh, which would provide substantial relief to middle-income purchasers amid escalating urban housing prices.
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The industry also seeks a reduction in the Goods and Services Tax (GST) on construction materials, particularly cement, to mitigate high construction costs. Allowing input tax credits for under-construction properties is proposed to further drive sectoral growth.
Granting infrastructure status to the housing sector is a long-standing demand. Such a move would facilitate easier access to financing, attract more investments, and potentially lead to lower borrowing costs for developers, thereby accelerating project completions.
Additionally, the sector anticipates the introduction of a single-window clearance system to streamline approval processes, reducing project delays and associated costs. This reform could enhance efficiency and encourage timely delivery of real estate projects.
The 2025 Budget is also expected to focus on promoting green and sustainable development within the real estate sector. Industry stakeholders are urging the government to introduce incentives for adopting energy-efficient building practices, such as tax rebates for developers incorporating green technologies and sustainable materials. With urbanization on the rise, developers also hope for measures that support smart city projects, enhancing urban infrastructure and connectivity.
Stay tuned for in-depth insights and quick updates on Budget Day.
Stocks in Focus: DLF Ltd, Godrej Properties, Oberoi Realty Ltd, Macrotech Developers Ltd, Sobha Ltd, Mahindra Lifespaces Ltd, Phoenix Mills Ltd