Rohan Khatau, Director, CCI Projects Private Limited
Credit: CCI Projects Private Limited
Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
The real estate sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping its fingers crossed regarding their expectations from the government's most important financial document of the year.
Here's what Rohan Khatau, Director, CCI Projects Private Limited has to say--
With the Union Budget 2025-26 around the corner, the real estate sector is keenly anticipating measures that will bolster growth and address critical challenges. Here are a few key expectations from the government to ensure sustainable progress and greater housing accessibility:
Enhanced Tax Benefits for Homebuyers
We urge the government to consider increasing the tax exemption limit on home loan interest under Section 24(b). Enhancing these benefits will significantly improve affordability for first-time homebuyers, especially in urban and semi-urban regions, where property prices remain high.
GST Rationalisation
A unified and lower GST rate for under-construction properties will provide much-needed relief to homebuyers while encouraging demand in this segment. Currently, multiple tax layers create confusion and deter potential buyers.
Support for Affordable Housing
The extension and expansion of benefits under the Pradhan Mantri Awas Yojana (PMAY) will be crucial to bridging the housing gap. The introduction of new subsidies and incentives for developers focusing on affordable housing will accelerate the mission of ‘Housing for All.’
Focus on Rental Housing
With urbanisation on the rise, promoting rental housing schemes will create a more structured rental market. This move will cater to a diverse population, including millennials and migrating professionals.
Single-Window Clearance Mechanism
Simplifying project approvals through a single-window clearance system will expedite project execution, reduce costs, and enhance investor confidence. It is a much-needed reform to drive efficiency across the sector.
Increased Budget Allocation for Infrastructure Development
Investment in infrastructure projects like metro connectivity, highways, and urban transport networks directly impacts real estate demand. Enhanced connectivity to peripheries will unlock their potential as emerging growth corridors.
Industry Status for the Real Estate Sector
Granting industry status to the real estate sector will open avenues for lower borrowing costs and improved access to institutional credit. This will strengthen developers' ability to deliver quality projects on time.
The real estate sector plays a pivotal role in driving economic growth and creating employment. Progressive and pragmatic measures in this year’s budget can act as a catalyst, fostering confidence among stakeholders and contributing significantly to India’s vision of becoming a $5 trillion economy."
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.