Real Estate Sector's Bold Hopes for Union Budget 2025

Anticipating Changes in the 2025 Union Budget

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, is awaited with great anticipation by the real estate sector. Developers, homebuyers, and industry stakeholders have high hopes for various measures that could drive growth and make the sector more accessible. The focus remains on reducing GST burden, improving tax reliefs, and introducing industry status for real estate to foster future housing development.

Key Expectations from Real Estate Leaders

Industry leaders, including Peush Jain, MD of Anarock Group, and Piyush Bothra, CFO of Square Yards, are calling for targeted reforms that will strengthen India’s position as an attractive investment destination. Among the expectations are adjustments in affordable housing price caps, increasing the tax deduction limit on home loan interest, and revising GST rates to create a more favorable market. Bothra emphasized the importance of tax incentives under Section 80C for investments in REITs, which could boost the sector’s appeal as a tax-saving avenue for investors.

The Call for Tax Reforms

Another significant demand is the rise in tax exemption limits for housing loans. As per Shrinivas Rao, CEO of Vestian, the real estate sector’s expectations for the 2025 budget are at an all-time high, with a strong push for GST input tax credit revisions and liquidity reforms. Badal Yagnik, CEO of Colliers India, emphasized the need for industry status to catalyze growth and development, particularly in tier 2 cities. Yagnik also stressed the importance of green building adoption and standardizing affordable housing benefits.

Boosting Affordable Housing and Infrastructure

The push for affordable housing continues to be a key demand, with many leaders, including Sahil Agarwal, CEO of Nimbus Group, advocating for tax deductions on home loans and revised GST for smoother transactions. Akash Khurana, President of Krisumi Corporation, hopes for more incentives for green housing and further infrastructure development, which will stimulate both demand and supply. Pakshal Sanghvi of Sanghvi Realty called for reforms like simplifying GST rates, increasing tax deductions, and easing FDI norms, all of which could foster a more supportive environment for developers.

Reaching for a Stronger Future

Finally, Garvit Tiwari, Director of InfraMantra, highlighted the potential of land and labor reforms, which could encourage private sector investments and create more jobs. Additionally, raising the affordable housing limit to Rs 1 crore would help attract more buyers into the real estate market, helping India maintain its growth trajectory. Manish Mehan, CEO-MD of TK Elevator India, also shared his vision for a stronger real estate sector that can fuel growth in related industries like elevators.