NEW DELHI: With Union Budget 2025 set to be presented by finance minister Nirmala Sitharaman on February 1, real estate stakeholders have high expectations for policy interventions that can stimulate the sector. Among the top demands are rationalizing the Goods and Services Tax (GST) and enhancing tax incentives for homebuyers to make housing more affordable and spur investments.
Vikas Garg, joint managing director, Ganga Realty, emphasized the need for GST rationalization, particularly for the growing luxury housing segment. “Rationalizing GST, offering enhanced tax benefits for homebuyers, and incentivizing affordable and mid-segment housing can boost demand across all categories. A reduction in stamp duties and easier financing options for luxury housing would be a game-changer.”
Vimalendra Singh, chief business officer (residential), Mahindra Lifespace Developers, echoed this sentiment, stressing that reducing GST on cement and allowing input tax credits for under-construction properties would drive growth. “Increasing the home loan tax exemption limit would benefit middle-income buyers, especially with rising urban housing prices,” he added.
Harshvardhan Neotia, chairman, Ambuja Neotia Group advocated for revising income tax deductions under Section 24(b) from Rs 2 lakh to Rs 5 lakh. “This will enhance affordability and boost homeownership in the slowing affordable housing sector,” he said.
Industry experts also highlighted the need for rental housing reforms. Routhu Nagaraju, chief executive officer, Experion Developers, suggested a special tax dispensation for organized rental housing, student housing, and dormitories for industrial workers. “Tax incentives will attract institutional capital and enable large-scale development of alternative housing to address the growing societal need.”
Additionally, Navin Makhija, managing director, The Wadhwa Group, called for the revival of the 80-IB tax benefit for developers undertaking affordable housing projects. “This provision will incentivize developers to launch more affordable housing projects, aligning with the government’s ‘Housing for All’ vision.”
Sankey Prasad, chairman & MD, Middle East & India Colliers, added that strategic initiatives such as increased allocations for affordable housing and streamlined regulatory frameworks have the potential to ignite fresh investments while meeting the aspirations of millions.
Pranay Kumar, executive director, Rudrabhishek Enterprises, emphasized the need to extend the timeline for capital gains exemption from 3 years to 5 years, considering it critical for driving investments.
