Real Estate Industry Expectations from 2025-26 Budget
Mr Piyush Bothra, Co-Founder and CFO, Square Yards
"As we enter 2025, real estate stands poised for crucial new reforms to drive its growth. A key priority is adjusting the affordable housing price cap beyond the current Rs. 45 lakhs to align with rising development costs in metropolitan areas. Another significant expectation is to increase the tax deduction limit on home loan interest from Rs. 2 lakhs to Rs. 4 lakhs, providing tangible relief to aspiring homeowners. Reduced GST rates will further enhance market vibrancy, creating a more accessible pricing structure. Finally, introducing tax incentives under Section 80C for investments in REITs can promote real estate as an attractive tax-saving avenue, drawing new investors to the sector. These measures have the potential to catalyse substantial demand, ensuring a stronger, more sustainable real estate market in the years ahead."
Mr Shrinivas Rao, FRICS, CEO, Vestian
"Elevated borrowing costs amid sticky inflation led to a sharp rise in construction costs in 2024. These costs are expected to further increase on the back of supply chain disruptions due to increasing geopolitical conflicts. Amid rising costs and a demand slowdown, the real estate sector's expectations from the upcoming budget are at an all-time high. Rise in tax exemption limit for housing loans, granting 'Industry' status, amendments in GST input tax credit regulations, boost in affordable housing sector by broadening the definition, and easing liquidity by policy reforms are some of the broad expectations from the upcoming Union Budget 2025-26."
Mr Badal Yagnik, CEO, Colliers India
Budget 2025 is expected to build cornerstones to drive the next phase of elevated growth in Indian real estate with an ambition to reach USD 1 trillion by 2030. Transformative measures in the form of incentives & favourable policies to fuel infrastructure, economic and real estate development in tier 2 cities, technology-led infrastructure & growth corridors and incentivizing green building adoption will draw significant domestic and foreign institutional capital. Accordance of 'industry' status to real estate, standardization & extension of affordable housing benefits, streamlining and rationalization of GST levy across segments possess significant potential to drive heightened real estate activity across segments and geographies with better access to capital and single window clearance. While the simplification of tax regimes across individuals & corporates will continue to bring in efficiencies, drive entrepreneurial capital, retail investment; a concerted coordination between the country's legal and financial framework will surely aid in improving ease of doing business.
