Real estate sector hopes for reforms to boost growth and affordability in Union Budget 2025-26
Kolkata, Jan 10 (Mayank Nigam) 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.