The Union Budget is just around the corner, and the real estate sector is buzzing with expectations for transformative policies. As one of the largest contributors to India’s GDP and a significant source of employment, the industry is hopeful for bold measures to address key challenges. Stakeholders are looking forward to initiatives that make housing more affordable, simplify tax structures, and boost investment flows into the sector.
Here’s what industry leaders have to say about their expectations and the changes they hope to see this year.
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., says, “As we approach the upcoming budget, the real estate sector is optimistic about reforms that can act as growth catalysts and enhance operational efficiency. Revising the current tax exemption limit on housing loans to ₹5 lakhs, in line with rising property prices and construction costs, could provide significant relief to homebuyers. This step would directly support millions of aspiring homeowners and boost demand across the sector.
Equally transformative would be granting industry status to real estate, a move capable of invigorating over 200 allied sectors. Such recognition would foster job creation, enable skill development, and amplify economic activity, further solidifying the sector’s position as a cornerstone of India’s economy.
The real estate industry is poised to play a defining role in India’s journey toward ‘Viksit Bharat 2047.’ Strategic reforms, such as adjustments to GST input tax credit regulations, could reduce developers’ tax burdens, potentially stabilizing property prices and making housing more accessible. Additionally, introducing a ₹5 lakh subsidy for housing loans up to ₹1 crore would offer crucial financial support to urban and semi-urban homebuyers.
Broadening the definition of affordable housing to include properties priced up to ₹1 crore would align with evolving market dynamics and strengthen the government’s vision of ‘housing-for-all.’ These reforms, if implemented, could unlock tremendous potential, propelling the sector toward sustainable growth while contributing significantly to the nation’s development goals.”
Mr. Akash Khurana, President and CEO, Krisumi Corporation, says, “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.”
Mr. Sahil Agarwal, CEO, Nimbus Group, says, “The upcoming budget holds significant importance as it will be the first full-year budget of the Modi 3.0 government. We anticipate major announcements aimed at benefiting the real estate and infrastructure sectors, which are critical growth engines for the economy and support numerous allied industries.
One key area of focus should be the rationalization of taxes and duties levied on homebuyers, which in many states exceed 12% of a property’s value. In the previous budget, the finance minister urged state governments to address this issue, but significant progress has yet to be made. We hope this budget includes provisions to streamline these charges and provide much-needed relief to homebuyers. Additionally, we urge the government to revisit the long-term capital gains (LTCG) tax on real estate and consider providing relief in this area.
Steps toward GST reforms for the real estate sector are also necessary to make it a more attractive investment option. Furthermore, increasing the tax deduction limit under Section 24(b) for home loan interest, currently capped at ₹2 lakh per annum, to at least ₹5 lakh would provide substantial financial relief. This is particularly relevant for homebuyers in metropolitan cities, where high property prices necessitate large home loans. Such a move could boost demand and promote homeownership.
Introducing industry status for the real estate sector is another long-pending demand. This would enable developers to access capital at more competitive rates, making housing more affordable for buyers.
The government should also consider increasing budgetary allocations for infrastructure development, including metro networks, multimodal corridors, and last-mile connectivity projects. These investments would not only improve urban mobility but also stimulate the growth of commercial real estate in metro cities and their peripheral areas, fostering economic activity and attracting investment.
Overall, a balanced approach in the budget—rationalizing taxes, incentivizing homebuyers, and strengthening infrastructure—would play a crucial role in driving growth in the real estate and infrastructure sectors while contributing to broader economic progress.”