Boosting Urban Infrastructure: Realty Sector's Wish List For Budget 2025

The 2025 budget must give the push to make housing affordable and sustainable for growth at this critical juncture in the real estate industry. Due to growing urbanisation and increased demand in the cheap, mid-income, and luxury categories, the real estate market saw robust development last year. The sector hopes that tax relief for homebuyers and regulatory simplification will be given top priority in the coming 2025 budget. The industry would also grow if tax breaks were made available to investors in REITs that concentrate on high-end commercial or residential properties.

Budget 2025: Real Estate Sector Eyes Tax Relief and Industry Status for Sustained Growth

Last year, the real estate sector witnessed strong growth driven by rising urbanization and increasing demand across affordable, mid-income, and luxury segments. We are hoping that the upcoming budget will prioritise tax relief for homebuyers and streamline regulations. Additionally, introducing tax benefits for those investing in REITs focused on premium commercial or residential assets would encourage more investments and boost the sector. We are also hoping that the government will continue to invest in infrastructure projects. These measures will help the housing sector remain a key contributor to economic progress, said Aditya Kushwaha, CEO and Director, Axis Ecorp.

Granting industry status to the real estate sector has been a long-standing demand, and we remain hopeful it will finally be addressed this year. Such a move has the potential to significantly stimulate growth, benefiting numerous ancillary industries, driving job creation, enhancing skill development, and amplifying overall economic activity, Aditya Kushwaha further added.

Budget 2025: Increasing Tax Exemption Limit to Rs 5 Lakh Could Make Homeownership a Reality

Property prices and construction costs have consistently increased over the years. In this scenario, increasing the tax exemption limit to Rs 5 lakh aligns perfectly with the evolving needs of homebuyers and the market. It will help ensure housing remains accessible and attractive for buyers. This could provide the kind of relief home buyers need to make owning a home a little more within reach. Another important change that we are looking forward to is the GST input tax credit. Right now, the tax burden on developers is high, and a small adjustment could help ease that pressure. If developers feel less of a strain, it could mean more affordable properties in the market. These steps could make a difference in making housing more accessible for everyone, as per Amrita Gupta, Director of Manglam Group and Founder President of CREDAI Rajasthan Women's Wing.

From Tax Relief to Tier-2 Growth: How Budget 2025 Can Boost Real Estate Momentum

The real estate sector stands at a pivotal juncture, and the 2025 budget must provide the impetus to make housing accessible and sustainable for growth. We are hoping that the government will take measures to help the sector in unlocking its true potential. The government should prioritise fiscal incentives for affordable and mid-segment housing, including tax benefits for developers and buyers and enhanced funding under PMAY. This would not only help the sector maintain its current momentum but also help meet the demand for quality homes, as per Mohit Goel, Managing Director, Omaxe Ltd.

Lower interest rates would make home loans more affordable, encouraging more people to buy homes. Income tax relief would also be beneficial, increasing disposable income and supporting greater spending on real estate. Additionally, infrastructure development in Tier 2 and Tier 3 cities is critical to fostering balanced growth and easing the pressure on metro cities. Finally, reducing excise duty on fuel would help reduce construction costs, which would, in turn, keep housing prices stable. We hope the upcoming budget will address these needs, creating a more sustainable path for the sector's growth, Mohit Goel further added.