The real estate sector has recorded rapid growth of urbanization, infrastructural development and the increasing efforts of individuals. The sector contributes 8-9% to the country's GDP and plays a crucial role in the economy. The Union budget of 2025 is expected to introduce reforms and incentives that aim to approach existing challenges and to drive the sector to even greater heights.
1. Home ownership
For most Indians, the ideal dream remains to have a home. Although the urban housing market is on an upward growth, these properties are unaffordable for most Indians. Stiff interest rates and the covering of tax advantages have made it difficult for people to buy houses.
The highly expected reforms in the upcoming budget would improve the tax advantages for borrowers of housing loans. The current maximum deduction, which is available in accordance with Section 24 (b), is 2 LAKH per year in interest of housing loans. The amount has not increased since 2014, while real estate prices rise, as well as the quantum of housing loans. For example, an interest component of around 4.2 LAKH per year is designed in the first few years with a housing loan of 50 LAKH of 50 LAKH. With the existing deduction limit, the delivered tax relief is very marginally and relieves nothing to reduce the burden for a buyer. According to this example, it is a question of serious seriousness to increase the existing 2 -pound limit of this deduction to 4 LAKH.
2. Escaling construction costs
Another increasing problem is the increasing construction costs, which serve as an obstacle to affordable apartments. Increasing the costs for the land acquisition, the growing input costs for steel and cement and the lack of work have made construction costs expensive, thereby increasing the prices for houses mainly in urban centers. Now the union budget can undoubtedly record some offer measures. For example, the simplification of the GST in building materials can help developers process quality houses with a reasonable price. The incentives for the use of green and sustainable building material will reduce long -term operating costs and thus a sustainable and inexpensive housing ecosystem.
3 .. Tax reforms
Tax reforms have a significant impact on the trends in the real estate sector and in the house shopping pattern. In the present tax regime, the interest paid for housing loans are deductible in accordance with Section 24 (b) and the repayment of the main repayment according to section 80c. The LAKH limit for interest payments of 2 GBP in connection with the inclusion of legal contributions such as Provident Fund (PF) in the 80c limit has insufficiently made these deductions for most borrowers.
A possible reform could increase the interest deduction limit from £ 2 LAKH to 4 LAKH. Another option is to allow separate tax deductions for the repayments for residential construction loans in accordance with section 80c instead of involving them in the previous 80 ° C boundaries. Provision of tax exemptions for the population of the housing loan interest rates that would receive individuals for the selection of a new tax regime, which is available in accordance with Section 115BAC, continue to alleviate the loads that were attributed to residential property by loans.
4. Infrastructure planning
Infrastructure improvements were an essential growth factor for the Indian real estate market, especially for emerging cities and cities. With continuous urbanization growth, planning infrastructure development on the real estate market is now more important.
The union budget may have more investments in the development of the infrastructure, including street connectivity and improvement in the public transport system and the supply services in animal II and animal III cities in the next budget. These developments would not only make living space more accessible in these regions, but also encourage developers to concentrate on affordable residential projects outside the crowded U -Bahn cities.
The promotion of intelligent cities with integrated solutions for water, waste management and energy could also stimulate the demand for real estate in aspiring urban areas. This could relieve the stress of the large metropolitan regions and at the same time increase the overall economy.
5. Green rooms
A big reason for concern on today's Indian real estate market, especially in metropolises, was environmentally friendly, since the rapid spread of both living and commercial developments entered the open spaces. Therefore, the highly expected budget would concentrate on the increase in green development and the maintenance of these green areas so that they help to maintain a healthier life and life with minimum pollution.
More environmentally managed apartments are likely to be attributed to their respective projects through this commitment of developers through the inclusion of green rooms and energy -saving designs. Tax discounts on sustainable building practices and the integration of environmentally friendly technologies such as solar collectors and rainwater use systems in residential complexes would encourage tax discounts developers to apply more environmentally friendly measures and at the same time develop a quality of life in residents.
Since the real estate sector takes a first -class place in the country's economy, the Union budget in 2025 has all promise to put some reforms on the table that could solve the problems with which the sector has already confronted and could lead them to its future. The budget will be able to provide the urgently needed impulse for residential property and sustainable growth in the real estate sector through measures such as improved tax benefits for buyers, cost reduction initiatives for developers, better infrastructure planning and the promotion of green spaces. Such an orientation will enable the political decisions to make the government to meet the dreams of millions of Indians, to own a house and at the same time to promote long -term economic prosperity.
The author is the deputy chairman of the NAREDCO-MAHARASHTRA