Real estate sectors expectations from the upcoming budget

Mr. Mohit Jain, Managing Director, Krisumi Corporation

As the Hon’ble Finance Minister prepares to present the maiden budget of Modi 3.0, the real estate sector has a lot of hope from it. We expect the Government to continue its thrust on infrastructure development, which will boost the real estate sector across cities including the peripheries of metros as well as in tier II and III cities. The upcoming budget should provide greater benefits to the salaried class as they have played a pivotal role in record-high direct tax collections. One such step would be to increase the tax exemption limit on both the principal amount and interest paid on home loans. Amid substantial rise in property value over the last couple of years, the current ₹2 lakh tax rebate on housing loan interest should be enhanced to a minimum of ₹5 lakh. Such a step will boost demand for residential properties. Similarly, a separate section should be introduced for the deduction against home loan principal repayment as the present Rs 1.5 lakh limit under section 80(C) is inadequate.

Given the government’s ongoing push for housing for all, we also anticipate the relaunch of the CLSS scheme, which will boost housing demand across various segments. The Government should also look at implementing the single window clearance system for all project-related approvals, a long-pending demand of the industry.  This will considerably reduce delays thereby benefitting all stakeholders including the government, developers as well as end users i.e. home buyers.

Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global (India) Ltd. & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development

“As we look forward to the upcoming budget, the real estate sector anticipates several key reforms to drive growth and efficiency. Granting Industry status to real estate will attract investments and streamline regulations. A simplified single-window clearance system will expedite project approvals, reduce delays, and enhance overall project execution. Revising the GST input tax credit rules will reduce property prices and increase transparency, while increasing the home loan interest rebate under Section 24 to ₹5 lakh will boost demand. Additionally, increased budget allocations for urban infrastructure and lower stamp duty rates for property transactions or waiver for first time home buyer from stamp duty will stimulate real estate growth. Expanding the definition of affordable housing to include homes up to ₹75 lakhs with a larger carpet area of 90 sq. meters, along with the relaunch of the CLSS scheme or similar scheme will further benefit homebuyers.

The Indian economy has shown remarkable resilience and transformation over the past decade, with significant progress under the principle of ‘Sabka Saath, Sabka Vikaas.’ The government’s unwavering commitment to development is evident in continued investments in infrastructure, housing, and urban development. These initiatives and reforms are crucial for sustaining economic growth, creating jobs, and improving living standards, paving the way for India to become a developed nation by 2047.”