Real Estate Sector Awaits Budget 2025 with High Hopes

The forthcoming Union Budget for 2025-26, which will be unveiled by Finance Minister Nirmala Sitharaman, is highly anticipated by the real estate industry. Stakeholders within the sector are optimistic that the budget will further enhance the growth momentum established in 2024.

Key Anticipations from the Budget:

• Reduction in GST: Developers are advocating for a decrease in GST rates applicable to under-construction properties to improve affordability and stimulate sales.
• Reinstatement of CLSS: The reintroduction of the Credit Linked Subsidy Scheme (CLSS) for first-time homebuyers is anticipated to boost demand, especially in the affordable housing market.
• Higher Home Loan Interest Deduction: There is a call for an increase in the home loan interest deduction limit under Section 24(b) of the Income Tax Act to promote homeownership.
• Eased FDI Regulations: Industry representatives are urging for a relaxation of Foreign Direct Investment (FDI) regulations to draw in more foreign capital into the sector.
• Streamlined Approval Processes: The implementation of simplified single-window clearance systems is expected to accelerate project approvals and minimize delays.
• Emphasis on Tier-II Cities: Initiatives that foster housing development, infrastructure enhancement, and improved connectivity in Tier-II cities are essential for promoting urbanization and regional growth.
• Support for Green Building Initiatives: Promoting sustainable urban development through tax incentives and other supportive measures for green building practices is considered vital.

Industry Leaders' Perspectives:

• Sudeep Bhatt, Director of Strategy, Whiteland Corporation: Emphasizes the need for better tax benefits for homebuyers, rationalization of GST rates, and policies to enhance liquidity for developers.
• Kirthi Chilukuri, Founder & MD of Stonecraft Group: Advocates for a balanced approach that benefits both developers and buyers, including easing the GST burden, reviving CLSS, and revising the home loan interest deduction limit.
• Ashish Bhutani, CEO, Bhutani Infra: Highlights the importance of single-window clearance systems, attracting foreign investment in commercial real estate, and providing tax breaks for green buildings.
• Yashank Wason, Managing Director, Royal Green Realty: Focuses on the need for policies that support housing development, infrastructure growth, and improved connectivity in Tier-II cities.
• Mohit Bansal, CEO, GMI Infra: Emphasizes the importance of affordable housing, simplified rules, tax benefits, and support for eco-friendly projects.

Overall, the real estate sector is optimistic that Budget 2025 will introduce measures that will further strengthen the sector's growth trajectory, contribute to economic development, and generate employment opportunities across the country.