Kolkata, Jan 10 (UNI) With the Union Budget 2025-26 around the corner, India’s real estate sector is brimming with expectations for reforms that can unlock growth, improve homebuyers' affordability, and ensure developers' financial stability.
Contributing nearly 8 percent to the nation’s GDP, real estate remains
a key driver of employment generation and infrastructure development,
making it an essential component of India’s long-term economic
strategy.
In 2024, the sector demonstrated robust growth, with residential
housing sales reaching record levels despite inflationary pressures
and rising interest rates. However, developers and experts believe
sustaining this momentum requires policy interventions focused on tax
relief, access to funding, and streamlined approval processes to
address ongoing challenges.
"As we look ahead to the Union Budget 2025-26, we are optimistic about
its potential to usher in transformative changes for the Indian real
estate sector. Strategic fiscal measures aimed at stimulating demand,
easing liquidity constraints, and simplifying regulations are critical
to revitalizing the market and ensuring sustainable growth. Addressing
the sector’s evolving needs will not only restore buyer confidence but
also position Indian real estate on a global scale," Elan Group
executive director Sandeep Agarwal said on Friday.
" We also encourage the government to prioritize policies that foster
technological advancements, driving a digital revolution in the real
estate industry. By embracing innovations like blockchain for seamless
and transparent transactions, AI-driven market analytics, and
sustainable building technologies, we can unlock the next wave of
growth. With the right support in this Union Budget, we have an
incredible opportunity to position Indian real estate as a global
leader while ensuring long-term resilience and sustainability." he
elaborated.
One of the key demands from the sector is an increase in the tax
deduction limit on home loan interest under Section 24(b) of the
Income Tax Act from Rs 2 lakhs to Rs 5 lakhs, which developers believe
will boost demand, especially in metro cities where property prices
remain high. Industry leaders are also advocating for the revival of
the Credit Linked Subsidy Scheme (CLSS) to support first-time
homebuyers and ease liquidity constraints in the market.
UNI PC KK