Budget 2025 expectations for real estate sector: With the Union Budget on the horizon, real estate industry leaders have presented their proposals, emphasising affordable housing revival, regulatory improvements, and demand stimulation.
Primary requests encompass tax benefits, additional funding allocation, and the recognition of real estate with industry status.
According to an ANI report, NAREDCO Chairman Niranjan Hiranandani emphasised making home ownership more accessible by proposing an increase in tax deduction limits for home loan interest from Rs 2 lakh to Rs 5 lakh. His recommendations included infrastructure classification for housing, which would reduce borrowing expenses and simplify financing access.
He suggested expanding rental housing programmes and adjusting individual tax rates from 37 per cent to 25 per cent to enhance market engagement and disposable earnings. The sector continues to prioritise affordable housing.
Also Read | Budget 2025 new vs old income tax regime: Will FM Sitharaman do away with the old regime soon? Experts weigh in
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”.
ANAROCK Group Chairman Anuj Puri suggested reinstating the Credit-Linked Subsidy Scheme under PMAY to support first-time buyers.
He requested the government to allocate centrally managed land for affordable housing developments and increase the Rs 45 lakh price limit for affordable homes in expensive 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”.
Also Read | Railway Budget 2025: Indian Railways to focus on modern trains, upgraded stations & tracks – details here
CBRE India Chairman & CEO Anshuman Magazine addressed concerns about increasing construction and borrowing expenses. His suggestions included revising affordable housing price limits, introducing REIT investment tax benefits, and enhancing home loan interest deductions to attract investors and support 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”.
JLL India Senior Director Ritesh Mehta highlighted the significance of granting industry status to real estate, enabling reduced loan rates and construction expenses, 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”.
Contributing approximately 7 per cent to India’s GDP, the sector’s leaders believe these changes would strengthen both the industry and economic growth.
They suggest that focusing on affordable housing and infrastructure enhancement could revitalise the residential segment in 2025.
