Union Budget 2025: Mohit Bansal GMI Shares Key Insights on Real Estate Sector Expectations

As the Union Budget 2025-26 approaches, the real estate sector is abuzz with anticipation, hoping for reforms that will stimulate growth and address longstanding challenges. Industry stakeholders have outlined several key expectations from Finance Minister Nirmala Sitharaman's upcoming budget.

Tax Incentives and Reliefs

A primary expectation is the enhancement of tax benefits for homebuyers. Experts suggest increasing the deduction limit under Section 80C for housing loan repayments, which would provide much-needed relief to homebuyers and boost housing demand. Additionally, revising the home loan interest deduction under Section 24(b) to ₹5 lakh is proposed to make homeownership more financially practical.

Industry Status and Single-Window Clearance

Granting 'industry' status to the real estate sector is a longstanding demand. This recognition would unlock access to affordable funding, streamline approvals, and attract investments, driving economic growth. Implementing a single-window clearance system is also sought to simplify processes and speed up project timelines, reducing delays and costs associated with multiple approvals.

Goods and Services Tax (GST) Reforms

Rationalizing GST rates for under-construction properties is another critical expectation. Easing the GST burden on developers would help stabilize property prices and boost the housing market. Additionally, rationalizing GST through input tax credits on residential projects is expected to reduce costs for developers and consumers alike, thereby making housing more affordable and boosting demand.

Affordable Housing and Credit Linked Subsidy Scheme (CLSS)

Revising the affordable housing price cap to ₹80 lakh, in line with increasing prices in metro cities, is anticipated to encourage homeownership and investment. Furthermore, reviving the Credit Linked Subsidy Scheme (CLSS) for first-time homebuyers could significantly boost the housing segment, making homes more accessible to millions.

Foreign Direct Investment (FDI) and Sustainability Initiatives

Introducing policies and reforms to amplify foreign and domestic investment into the sector is expected to strengthen market sentiments. Additionally, implementing tax incentives to promote the adoption of sustainable products and practices within the construction ecosystem could encourage industries to transition towards sustainability, aligning with national climate goals. Mohit Bansal, CEO, of GMI Infra hopes that the budget 2025 will encourage growth. "Affordable housing, simplicity in rules, and tax benefits for builders and buyers can make a big difference.

In conclusion, the real estate sector is optimistic that the Union Budget 2025-26 will address these critical areas, fostering a more robust and resilient industry. Implementing these measures could significantly contribute to the nation's economic development and employment generation.

Note: This article references insights from industry experts as reported by ET Now.