By Mr. Abhishek Jain, COO, Satellite Developers Private Limited (SDPL)
The Union Budget 2025-26 is a crucial moment for the real estate sector. This industry is a cornerstone of India’s economy and a major employment generator. As the government focuses on housing and infrastructure, stakeholders expect measures that will drive growth and address challenges.
Boosting Homebuyer Affordability
One key expectation is an increase in the tax deduction limits under Section 80C and Section 24(b) of the Income Tax Act. These provisions currently allow deductions for home loan principal and interest repayment. Raising these limits would improve affordability for middle-class homebuyers, helping them achieve their dream of owning a home.
Focus on Affordable Rental Housing
Urbanization has made affordable rental housing a pressing need. Tax benefits for individuals and companies investing in rental housing could align with the government’s Rental Housing Scheme. This step would encourage the development of organized rental markets and provide more housing options for the urban workforce.
Infrastructure Projects as Growth Catalysts
Infrastructure development drives real estate growth. Announcements of mega projects such as metro expansions, high-speed rail corridors, and urban transport systems could open new growth corridors. Better connectivity would boost emerging markets and peripheral regions, attracting investments and increasing property values.
Incentives for REITs and InvITs
Institutional investments are vital for scaling commercial and infrastructure projects. The sector seeks additional tax benefits and incentives for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These measures could encourage more capital inflows and strengthen the industry.
A Vision for a $5 Trillion Economy
The real estate sector plays a significant role in India’s journey toward becoming a $5 trillion economy. A balanced and forward-looking Union Budget can address core challenges while fostering growth.
The Budget 2025-26 presents an opportunity for the government to reaffirm its commitment to the sector. With supportive policies, the real estate ecosystem can become more inclusive and robust.
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