The upcoming Budget 2025 has the real estate sector abuzz with anticipation, as stakeholders look forward to announcements that could shape the industry’s growth trajectory. Developers, investors, and homebuyers are all eager to see measures that promote affordability, infrastructure development, and sustainability. Here’s an in-depth look at what the industry is hoping for:

Enhanced Tax Benefits for Homebuyers

Homebuyers, especially first-timers, are expecting increased tax relief on home loan interest under Section 80EEA of the Income Tax Act. Such a move could ease financial burdens and encourage property purchases, particularly in the affordable housing segment.

Boost to Affordable Housing Projects

The sector is keen on an extension of benefits under the Pradhan Mantri Awas Yojana (PMAY) scheme. Developers are also calling for streamlined approval processes and tax incentives to enhance supply in the affordable housing market, aligning with the government’s “Housing for All” initiative.

Infrastructure Investments to Drive Growth

Urban infrastructure is expected to take center stage, with increased allocations for transportation, smart city projects, and connectivity enhancements. These developments not only improve living standards but also unlock the potential for real estate growth in suburban areas.

Support for REITs and Commercial Real Estate

Real Estate Investment Trusts (REITs) have gained traction as an attractive investment option. Simplifying compliance and reducing taxation on REIT earnings could attract more investors and bolster the commercial real estate market.

Emphasis on Sustainability

Sustainability is no longer a choice but a necessity. The industry hopes for government incentives for green building practices, including subsidies and tax rebates, to encourage eco-friendly construction and reduce the sector’s carbon footprint.

GST Reforms

High GST rates on under-construction properties remain a concern. Rationalizing these rates could bridge the gap between ready-to-move-in and under-construction properties, making housing more accessible.

Developer-Friendly Financing

The lack of affordable credit remains a significant challenge for developers. The budget is expected to introduce schemes offering low-cost funding, especially for stalled projects, to restore buyer confidence and revive the sector.

Encouraging Foreign Investments

Easing norms for Foreign Direct Investment (FDI) in real estate could unlock growth in emerging sectors such as co-living, co-working, and warehousing, fostering innovation and employment.

Focus on Tier-2 and Tier-3 Cities

As demand rises in smaller cities, the budget is expected to include provisions that promote real estate development in Tier-2 and Tier-3 regions through infrastructure funding and tax incentives.

Streamlined RERA Implementation

The Real Estate (Regulation and Development) Act (RERA) has been a game-changer for transparency and accountability. Stakeholders are looking for a single-window clearance mechanism to further expedite project approvals.

Conclusion

The real estate sector plays a vital role in India’s economy, contributing significantly to GDP and employment. The Budget 2025 has the potential to address pressing challenges and provide the necessary impetus for growth. By focusing on affordability, sustainability, and infrastructure, the government can set the stage for a vibrant and resilient real estate market.

Stay tuned for detailed coverage and expert analysis as the Budget unfolds. The industry’s hopes are high, and the opportunities for transformation are immense.

portunities for transformation are immense.