By Mr. Rohan Khatau, Director, CCI Projects Private Limited
As the Union Budget for 2025-26 approaches, the real estate sector is eagerly awaiting announcements that will drive growth, tackle ongoing challenges, and make housing more accessible. Here are some key expectations from the government to ensure sustainable progress and improve affordability for all:
1. Enhanced Tax Benefits for Homebuyers
One of the most pressing concerns for homebuyers is affordability. We hope the government will consider increasing the tax exemption limit on home loan interest under Section 24(b). This change will provide much-needed relief to first-time buyers, particularly in urban and semi-urban areas where property prices continue to be high.
2. GST Rationalization
Currently, the Goods and Services Tax (GST) for under-construction properties involves multiple tax layers, which can confuse potential buyers. A unified and lower GST rate for under-construction properties would be a significant step in making homes more affordable and would encourage demand in this segment.
3. Support for Affordable Housing
The Pradhan Mantri Awas Yojana (PMAY) has already made strides in addressing housing shortages, but there is still much to be done. Extending and expanding benefits under PMAY will help bridge the housing gap further. Additionally, offering new subsidies and incentives to developers who focus on affordable housing will support the government’s mission of ‘Housing for All.’
4. Focus on Rental Housing
With urbanization on the rise, many young professionals and millennials are opting for rental housing rather than homeownership. To support this growing trend, we urge the government to promote rental housing schemes and create a more structured rental market. This would cater to the diverse needs of today’s workforce and reduce the pressure on homeownership.
5. Single-Window Clearance Mechanism
The approval process for real estate projects can be time-consuming and cumbersome. Introducing a single-window clearance system would simplify the process, reduce costs, and expedite project execution. This reform would not only boost efficiency within the sector but also enhance investor confidence.
6. Increased Budget Allocation for Infrastructure Development
Real estate growth is closely tied to infrastructure development. Investing in key projects such as metro connectivity, highways, and urban transport networks would directly benefit the real estate sector. Enhancing connectivity to peripheral areas could unlock their potential as emerging growth corridors, providing new opportunities for developers and buyers alike.
7. Industry Status for the Real Estate Sector
One of the most impactful changes the government could make is granting industry status to the real estate sector. This move would open up access to institutional credit at lower borrowing costs, which would enable developers to deliver high-quality projects on time. It would also encourage long-term investments and strengthen the sector’s overall financial stability.
