By Mr. Navin Makhija – Managing Director, The Wadhwa Group
The real estate sector looks forward to significant reforms in the Union Budget 2025-26, which can drive growth and enhance its contribution to India’s economic development. The following measures would improve affordability and give a fresh boost to the housing market:
- Tax Benefits for Homebuyers: To promote homeownership across various income levels, we urge the government to allow home loan interest payments to be deducted from individual income tax liabilities. This change would reduce the financial burden on buyers, encourage demand in the residential real estate market, and serve as an attractive incentive for potential homeowners.
- Reviving the 80-IB Tax Benefit for Developers: Reinstating the 80-IB tax benefit for developers focusing on affordable housing is essential. This measure would motivate developers to invest more in affordable housing projects, in line with the government’s ‘Housing for All’ initiative. It would also address the increasing demand for budget-friendly homes.
- Interest Subsidy for Affordable Housing Developers: Introducing an interest subsidy for developers of affordable housing would help reduce their funding costs. This would, in turn, lower the overall cost of projects, making homeownership more accessible for the economically weaker sections and middle-income groups.
The real estate sector plays a crucial role in economic growth and job creation. We hope that the Union Budget 2025-26 will address these key expectations, introducing reforms that benefit both homebuyers and developers, and contribute to broader economic progress.
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