Will burden on buyers be eased in Budget?

The real estate sector plays a crucial role in the economic development of the country. The better the real estate sector, the better the economic condition of the nation. Despite the global developments, from the pandemic period to recent times, the Indian real estate sector has been thriving. In this context, the upcoming central budget has become a topic of significant interest. There is a discussion on whether the Union Finance Minister will deliver good news to real estate players and homebuyers. Experts believe that decisions supporting the real estate sector might be included in the upcoming central budget.

The real estate sector is closely watching the Union Budget 2025-26, which will be presented by Finance Minister Nirmala Sitharaman. Key expectations include a reduction in the GST burden on developers, the revival of the Credit Linked Subsidy Scheme (CLSS), revision of home loan interest rates, and relaxations in FDI regulations.

In 2024, the Indian real estate sector experienced unprecedented growth. The previous year saw significant growth in the Indian real estate market. The residential segment, especially luxury housing, showed improved performance, attracting attention from end-users and buyers. Experts believe that the central government may take further steps to boost the real estate sector, which continues to be a pillar of support for the country’s economy.

In the upcoming budget, there is a possibility of measures to propel the real estate sector towards growth, said G. Madhusudhan, Chairman of Sumadhura Group. “The real estate sector is seeking better tax benefits for homebuyers. Specifically, to boost housing demand, there should be a higher exemption limit for home loan interest. Rationalising GST rates on properties under construction, along with incentives for green and sustainable real estate projects, would be beneficial. Additionally, introducing policies to improve liquidity for developers and promoting ease of doing business should be prioritised,” he said.

SAS Infra Group Chairman G. Venkateshwara Rao expressed that there should be a balanced approach that benefits both developers and homebuyers. He stated, “Recognising real estate as an industry makes funding more accessible and speeds up the approval process. Attracting investments becomes easier, and ultimately, it contributes to the country’s economic growth. Reducing the GST burden on developers and reviving the Credit Linked Subsidy Scheme (CLSS) for first-time homebuyers can stabilise property prices. This will help expand the housing market,” he explained.

He also suggested revising the home loan interest deduction under Section 24(b) to Rs 5 lakh, as well as re-evaluating capital gains tax to improve liquidity in various segments. This would benefit everyone, he added. Venkateshwara Rao emphasised the importance of prioritising investments in urban infrastructure and providing incentives for green building construction, which would help in creating sustainable, livable cities that align with national climate goals.

GHR Infra’s Shyam Sunder Reddy believes that there is a possibility that the central government will focus on introducing a single-window clearance system nationwide to expedite project approvals. He mentioned that this would save time and significantly reduce delays in commercial real estate projects. Ravinder Reddy, MD of Pratyusha Developers, highlighted that there is a potential for the budget to give special attention to Tier-2 cities, which are becoming engines of economic growth, particularly for the real estate sector.