Mr. Sahil Agarwal, CEO, Nimbus Group
Since it would be the first full-year budget of the Modi 3.0 administration, the next budget is quite important. We expect significant announcements that will help the infrastructure and real estate industries, which are important economic development engines and support a wide range of related companies.
The rationalisation of homebuyer taxes and charges, which in many jurisdictions amount to more than 12% of a property’s worth, should be a primary area of concentration. Although the finance minister pushed state governments to address this issue in the last budget, there hasn’t been much movement. We hope that this budget contains measures to simplify these fees and provide homebuyers much-needed respite. Furthermore, we implore the government to re-examine the real estate long-term capital gains (LTCG) tax and think about offering relief in this regard.
To make the real estate industry a more alluring place to invest, steps towards GST changes are also required. Additionally, there would be significant financial relief if the tax deduction maximum for house loan interest under Section 24(b), which is now restricted at ₹2 lakh annually, was raised to at least ₹5 lakh. For purchasers in urban areas, where high real estate costs need substantial house loans, this is especially important. A measure like this might encourage homeownership and increase demand.
Another long-standing demand is the introduction of industry status for the real estate sector. This would make houses more accessible for purchasers by allowing developers to access funding at more favourable rates.
The government had to think about boosting funding for the construction of infrastructure, such as last-mile connection initiatives, multimodal corridors, and metro networks. In addition to increasing urban mobility, these expenditures would boost the expansion of commercial real estate in major cities and their surrounding regions, boosting the economy and drawing in capital.
Overall, a balanced budget strategy that rationalises taxes, encourages homebuyers, and fortifies infrastructure would be essential to boosting the real estate and infrastructure industries and advancing the economy as a whole.
Mr. Pradeep Aggarwal, Signature Global (India) Ltd.’s founder and chairman.
“The real estate industry is hopeful about improvements that will boost operational efficiency and serve as growth catalysts as we get closer to the next budget. Homebuyers may benefit greatly from raising the present tax exemption limit on housing loans to ₹5 lakhs in order to reflect escalating real estate and building expenses. Millions of prospective homebuyers would benefit immediately from this action, which would also increase demand in the industry.
Giving real estate industry status would be as revolutionary and could revitalise more than 200 related industries. Such acknowledgement will strengthen the sector’s standing as a pillar of the Indian economy by promoting job creation, facilitating skill development, and increasing economic activity.
A major role in India’s transition to “Viksit Bharat 2047” is anticipated for the real estate sector. By lowering developers’ tax obligations, strategic reforms like changes to the GST input tax credit rules may stabilise real estate values and increase housing accessibility. Additionally, introducing a ₹5 lakh subsidy for housing loans up to ₹1 crore would offer crucial financial support to urban and semi-urban homebuyers.
The government’s “housing-for-all” goal would be strengthened and in line with changing market realities if the definition of affordable housing were expanded to encompass homes up to 1 crore. If put into practice, these changes have the potential to unleash enormous potential, driving the industry towards sustainable growth and making a substantial contribution to the country’s development objectives.”
Mr. Akash Khurana, President and CEO, Krisumi Corporation
As the Union Budget for 2025 approaches, the government, with its view to push growth, is anticipated to introduce a slew of reforms which may boost economic activity and bring efficiency to different sectors, including real estate.
The real estate sector, being one of the largest contributors to the GDP, could serve as a catalyst in augmenting growth. Since the tax deduction on housing loans has remained stagnant at ₹2 lakh per annum, it is imperative for the government to increase the threshold to ₹5 lakh. This will propel the demand for housing further.
We also anticipate the government to continue its thrust on infrastructure development, as it has a multiplier impact on the economy. With the government’s focus on sustainable development, some kind of incentive for green and eco-friendly housing could boost the supply of sustainable units.