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As the Union Budget approaches, leaders from the real estate industry have voiced their expectations, focusing on measures to revive affordable housing, streamline regulations, and enhance market demand.
The key demands include tax reliefs, increased funding, and granting the long-awaited industry status to real estate. Niranjan Hiranandani, Chairman of NAREDCO, highlighted the need to make homeownership more affordable by increasing the tax deduction limit on home loan interest payments from Rs 2 lakh to Rs 5 lakh. He also called for infrastructure status for the housing sector, which would reduce borrowing costs and provide easier access to financing. Expanding rental housing initiatives and rationalizing individual tax rates from 37 per cent to 25 per cent are other measures he suggested to boost market participation and disposable income. Affordable housing remains a top priority for industry leaders. He said "To improve rental affordability, it is imperative to expand rental housing beyond industrial workers. We recommend deleting notional income from house property held as stock-in-trade to facilitate the creation of a sufficient rental housing stock, in alignment with the 'Housing for All' objective". Anuj Puri, Chairman of ANAROCK Group, advocated for reviving the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) to encourage first-time homebuyers. He also urged the government to release centrally controlled land for affordable housing projects and revise upwards the Rs 45 lakh price cap for affordable homes in high-cost cities like Mumbai. He stated "For the real estate sector, key expectations include industry status recognition and a revival of the affordable housing segment. Once a promising sector, affordable housing--homes priced under INR 40 lakh--has struggled post-pandemic, with demand and supply shrinking significantly". Anshuman Magazine, Chairman & CEO of CBRE India, emphasized the need to tackle rising construction and borrowing costs. He suggested revising the affordable housing price cap, introducing tax incentives for REIT investments, and increasing tax deductions for home loan interest. These measures, he noted, could attract new investors and provide much-needed relief to homebuyers. He added "Additionally, rationalizing GST rates and incentivizing green building adoption will help build a sustainable, technology-led growth trajectory. With these transformative measures, Budget 2025-26 can lay the foundation for a resilient real estate sector, driving economic development". Ritesh Mehta, Senior Director at JLL India, stressed the importance of granting industry status to real estate. This move would enable developers to access cheaper loans and lower construction costs, ultimately benefiting homebuyers He said "Recognizing real estate as an industry in the budget can significantly enhance the sector's performance. With this status, developers can access cheaper loans and reduced borrowing rates, ultimately lowering construction costs. These savings can be passed on to homebuyers, making housing more affordable". With real estate contributing nearly 7 per cent to India's GDP, industry leaders believe that these measures would not only strengthen the sector but also support overall economic growth. The focus on affordable housing and infrastructure development, they say, could help the residential segment regain its momentum in 2025. (ANI)
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