The residential real estate segment, particularly luxury housing, saw remarkable growth in 2024, drawing increased interest from both end-users and buyers .

As the Union Budget 2025-26 approaches, Finance Minister Nirmala Sitharaman is expected to unveil measures aimed at further supporting the real estate sector. Key areas of focus include reducing the GST burden on developers, reviving the Credit Linked Subsidy Scheme (CLSS), revising home loan interest deductions, and easing Foreign Direct Investment (FDI) norms.

The real estate sector has proven to be a crucial driver of economic growth, and experts are optimistic that the upcoming budget will introduce transformative policies to sustain this momentum.

Sudeep Bhatt, Director of Strategy at Whiteland Corporation, believes the budget offers an opportunity to enhance the sector’s growth and resilience. "The industry needs better tax benefits for homebuyers, such as an increased deduction limit for home loan interest to stimulate housing demand. Rationalizing GST rates for under-construction properties and incentivizing green, sustainable real estate projects are also anticipated. Additionally, policies to improve liquidity for developers, ease business operations, and attract private and foreign investments through relaxed FDI norms are essential. These measures could unlock the sector’s potential, bolstering economic growth and employment generation."

Kirthi Chilukuri, Founder & MD of Stonecraft Group, highlights the need for a balanced approach that supports both developers and buyers. "Recognizing real estate as an industry could facilitate access to affordable funding, streamline approvals, and attract investments to drive economic growth. Easing the GST burden on developers and reviving the CLSS for first-time homebuyers would stabilize property prices and stimulate the housing market. Increasing the home loan interest deduction under Section 24(b) to ₹5 lakh and revisiting capital gains taxation would improve liquidity across segments. Furthermore, prioritizing urban infrastructure investment and providing incentives for green building adoption could promote sustainable, livable cities while aligning with national climate goals."

Ashish Bhutani, CEO of Bhutani Infra, emphasizes the need for a single-window clearance system to expedite project approvals. "Such a system could significantly reduce delays in commercial real estate projects. Additionally, simplifying processes for foreign investment in mixed-use and Grade-A office spaces, along with offering tax incentives for green buildings and smart urban projects, could attract global investors. With strategic government support, real estate can create jobs and contribute significantly to India’s vision of becoming a $5 trillion economy."

Yashank Wason, Managing Director of Royal Green Realty, sees the budget as a chance to propel real estate growth, particularly in Tier-II cities, which are emerging as key drivers of economic development. "We need policies that encourage investment in diverse housing segments, infrastructure growth, and enhanced connectivity in cities like Indore, Bahadurgarh, and Sonipat. Higher tax deductions on home loan interest and uniform GST rates across segments would improve housing affordability. Streamlined single-window clearance systems are essential to reduce project delays and associated costs. These measures could enable Tier-II cities to become self-sufficient growth centers, contributing significantly to urban transformation and the real estate sector's prospects."

Mohit Bansal, CEO of GMI Infra, underscores the importance of simplicity and affordability. "Policies supporting affordable housing, simplified regulations, and tax benefits for both builders and buyers could drive significant progress. Support for eco-friendly projects and better urban development is vital for shaping the sector's future. A balanced budget could provide a much-needed boost to the housing market, moving the nation closer to achieving the ‘Housing for All’ goal," he said.