Shraddha Kedia-Agarwal, Director, Transcon Developers.
Credit: Transcon Developers
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 Shraddha Kedia-Agarwal, Director, Transcon Developers-- has to say--
"The real estate sector looks forward to bold and progressive measures from the Union Budget 2025-26 to bolster its growth and contribute significantly to the nation’s economic progress.
Tax incentives for homebuyers and investors:
Rationalization of GST rates on under-construction properties and a higher tax exemption limit for housing loans will incentivize homebuyers and ease their financial burden. Additionally, tax incentives for rental housing could attract institutional investments, benefiting urban renters.
Policy push for sustainable and green developments:
In line with the global focus on ESG (Environmental, Social, and Governance) criteria, the introduction of subsidies or incentives for green building certifications and renewable energy integration in residential and commercial projects would be a welcome move.
Single-window clearance mechanism:
A simplified and time-bound clearance system will significantly enhance ease of doing business, enabling developers to complete projects on time and reduce costs.
Infrastructure-led development:
Budget allocations for mega infrastructure projects like new metro lines, highways, and urban transport systems will catalyze real estate demand in emerging growth corridors.
Boost for REITs and InvITs:
To deepen the investment market, reforms to make REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) more tax-efficient and accessible to retail investors would stimulate institutional and global interest in Indian real estate.
Focused benefits for NRI Investors:
Considering the growing interest of NRIs in Indian real estate, specific measures such as streamlined repatriation processes, reduced tax burdens on property transactions, and enhanced ease of investing in residential and commercial properties could significantly boost NRI investments.
The real estate sector has always played a pivotal role in driving India’s GDP growth and generating employment. We are optimistic that the upcoming budget will address these expectations and create a conducive ecosystem for developers, homebuyers, and investors alike.
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.