Union Budget 2025 | Want reforms to benefit homebuyers and industry: Ramani Sastri, Chairman & MD, Sterling Developers

'There is a strong case for interest subsidy for first-time homebuyers as this will boost sales in the real estate sector,' he said.

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.

Ahead of the Budget, Ramani Sastri - Chairman & MD, Sterling Developers said, "As the country prepares for the Union Budget 2025, the real estate sector is hopeful for progressive reforms that could benefit homebuyers and the industry. This year, the demands go beyond the usual expectation of single-window clearance and industry status, which could unlock financial advantages and streamline project approvals. The government should raise the deduction limit for interest payment on home loans from the existing Rs 2 lakh a year to Rs 5 lakh, which will add momentum to the housing sector."

He noted, "For a large section of the population, affordability remains the biggest challenge and hence there should also be expansion in the definition of affordable housing as this would expand the benefits for homebuyers and hence boost the end-user demand."

Sastri added, "There is a strong case for interest subsidy for first-time homebuyers as this will boost sales in the real estate sector. We also urge the government to implement tax reliefs in terms of reduction in GST rate along with an input tax credit on under-construction properties. We would also like to see announcements to enhance ease of doing business for the developers to create an overall positive climate for real estate investment."

He further said, "These initiatives would not only drive growth in the real estate sector but also stimulate demand around 250 ancillary industries, thereby boosting job creation across these sectors. We also hope that the government will continue to focus on more infrastructure development as it will help drive housing demand across the country. Overall, the real estate sector plays a pivotal role in the economy, contributing significantly to employment and GDP. Hence, the upcoming budget should introduce measures that will bolster this economic context."

He continued, "With NITI Aayog projecting the sector’s market size to hit $1 trillion by 2030, it is imperative for the government to address these key issues, thereby creating a more efficient and investor-friendly environment."

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.