New Delhi, January 7, 2025: With the Union Budget 2025 on the horizon, Real Estate leaders are vocalizing their hopes for reforms that could drive growth, affordability, and innovation in the sector. Key stakeholders have highlighted a series of measures they believe will be pivotal for revitalizing the real estate market and contributing to the broader economy.
Mr. Vivek Sinha, Director, Sales & Marketing, KDMG Group, expressed optimism about the upcoming budget, stating:
“One of the primary demands is an extension of tax exemptions under Section 80-IBA for affordable housing projects, which have played a crucial role in addressing the housing deficit. We also seek the reduction of GST on under-construction properties, from 5% to 3%, to make homes more affordable for buyers. Additionally, it is imperative to incentivize using green building technologies by providing rebates and tax credits for sustainable construction.”
He further emphasized the importance of liquidity measures:
“Easier access to funding for real estate developers, particularly in the affordable housing and commercial sectors, is crucial. Reforms in the Real Estate Investment Trust (REIT) framework, along with tax exemptions for long-term capital gains, could attract greater institutional investment in the real estate market. Simplifying the approval process through a single-window clearance system is another critical step needed to reduce bottlenecks and speed up project timelines.”
Mr. Mohit Mittal, CEO, MORES, a leading real estate investment advisory firm, outlined a comprehensive wishlist:
“Enhanced tax deductions on home loans and reduced stamp duty charges can drive homeownership in the residential segment. Affordable housing requires extending benefits under the PMAY scheme and rationalizing GST rates to sustain demand. Meanwhile, the commercial real estate sector would benefit from policy measures encouraging foreign direct investment (FDI) and relaxed REIT regulations to enhance liquidity and attract institutional investors.”
Mr. Mittal also highlighted the need for targeted support in other areas:
“The industrial segment requires tax incentives for setting up manufacturing hubs and logistics parks, aligning with the Make in India initiative. Emerging sectors like co-living and warehousing need incentives to meet the demands of a growing e-commerce-driven economy. Technology-driven reforms, such as digitized land records and AI-enabled property solutions, are essential to ensure transparency and efficiency.”
Both leaders agree that a forward-looking budget addressing affordability, liquidity, and sustainability will be vital in ensuring robust growth across India’s real estate landscape.
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget on February 1, 2025, the sector remains optimistic about measures that could catalyze its development and significantly contribute to the nation’s economic progress.
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