As Budget 2025 approaches, the real estate sector has high expectations for transformative reforms to drive growth and address existing challenges. Developers across India are urging the government to grant the sector “industry status,” a long-pending demand that could unlock easier access to institutional funding and reduce financing costs.
Key expectations include tax relief for homebuyers and developers to boost affordability and sales, along with increased incentives for affordable housing. Developers are also seeking an expansion of benefits under Section 80-IBA for affordable housing projects and higher tax deduction limits for home loan interest.
Relaxation in Foreign Direct Investment (FDI) norms is another priority, aimed at attracting global capital and facilitating faster project execution. Additionally, stakeholders are calling for policies that promote rental housing, including tax benefits for developers engaged in building rental homes.
Sustainability is also a focus, with demands for incentives on green buildings and renewable energy integration. “Budget 2025 is an opportunity to address critical issues and align the sector with India’s vision of sustainable urban development,” said a prominent developer.
Real estate, a key driver of the Indian economy, anticipates bold measures in the budget to strengthen its contribution to GDP and employment generation.
