Union Budget 2025 | 'Interest subsidy for developers of affordable housing projects would be welcome,' says Wadhwa Group MD Navin Makhija

The Union Budget for the upcoming financial year is all set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. According to reports, the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption.

The real estate sector anticipates critical reforms from the Union Budget 2025-26 that can accelerate growth and further strengthen its contribution to India’s economic progress.

Speaking on this front, Navin Makhija, the Managing Director of The Wadhwa Group, has opened up about his expectations from the upcoming Budget and shared a list of measures that would not only enhance affordability but also bring renewed momentum to the housing sector.

"To boost homeownership across income segments, we urge the government to allow interest payments on home loans to be set off against individual income tax liabilities. This move will significantly reduce the financial burden on homebuyers and serve as a strong incentive for prospective buyers, ultimately stimulating demand in the residential real estate market," he said.

Makhija added, "Reviving the 80-IB tax benefit for developers undertaking affordable housing projects is crucial. This provision will incentivize developers to launch more affordable housing projects, aligning with the government's vision of 'Housing for All.' The benefit will also ensure increased supply in this category, meeting the ever-growing demand for budget-friendly homes."

"To make housing truly affordable, an interest subsidy for developers of affordable housing projects would be a welcome step. This will enable developers to access funding at lower costs, reducing the overall cost of projects. Consequently, this benefit will be passed on to end-users, making homeownership more accessible to economically weaker sections and middle-income groups," he went on.

The real estate sector is a cornerstone of economic growth and employment generation. We hope the Union Budget 2025-26 addresses these expectations and introduces reforms that empower both homebuyers and developers while contributing to the overall growth of the economy.