Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
With the Union Budget FY26 approaching, the Indian real estate sector is calling for crucial reforms, including a reduction in stamp duty, a revision of home loan deduction limits to INR 5 lakh, and an update to affordable housing norms under PMAY. Industry leaders from CREDAI-NCR, Anarock, and major developers like Gaurs, Raheja, and Kanodia Group emphasize the need for tax incentives, GST rationalization, and liquidity measures to boost housing demand. With 2024 witnessing a slowdown, stakeholders believe targeted fiscal measures could drive growth, support urbanization, and improve accessibility in the housing sector for buyers and investors alike.
With the Union Budget FY26 nearing, the Indian real estate industry has put forth key demands such as reducing stamp duty, revising home loan limits, and updating affordable housing norms under the Pradhan Mantri Awas Yojna (PMAY). Prominent consultancy firms and developers, including Anarock, Raheja, Gaurs, Kanodia Group, Reach, Urban Space, Justo, and Eros Group, have expressed their expectations for these reforms. Advertisement
Manoj Gaur, president of CREDAI-NCR and chairman of Gaurs Group, highlighted the burden of rising stamp duty on buyers and suggested raising the Section 80(c) deduction limit from INR 1.5 lakh to INR 5 lakh. He further recommended revising affordable housing criteria by focusing on carpet area rather than price caps and reintroducing a 100% tax holiday for projects approved before March 2022 to boost housing accessibility.
For commercial real estate, Mohit Kalia of Raheja Developers suggested rationalising interest rates and implementing a single-window clearance system to expedite approvals. Delhi-NCR's Kanodia Group advocated for tax relief and a reduction in GST on construction materials to lower project costs and encourage new ventures. The group's founder, Gautam Kanodia, emphasised the potential of the upcoming Budget to bolster the real estate sector's role in economic development.
Harinder Singh Hora of Reach Group also called for increasing the home loan deduction limit to INR 5 lakh to attract more investors. Meanwhile, Anuj Puri, chairman of Anarock Group, urged reintroducing the credit-linked subsidy scheme under PMAY for first-time buyers from the economically weaker sections. Puri noted the sharp decline in affordable housing sales, highlighting the need for targeted benefits to revive this segment.
The sector experienced a slowdown in 2024 due to elections, with housing sales and new launches declining in the top seven cities. However, with favourable Budget measures, experts foresee a potential revival in 2025. Avneesh Sood of Eros Group highlighted the importance of expanding liquidity measures and policies promoting rental housing and infrastructure growth to drive urbanisation.
Real estate fintech firm Justo's founder, Pushpamitra Das, called for GST rationalisation on under-construction properties and tax incentives for REITs, while Urban Space co-founder Radhika Koolwal advocated subsidies for domestic manufacturing in the home decor industry and GST reductions on furnishings. Industry leaders collectively stress the importance of Budget measures in fostering growth, innovation, and sustainability within the sector.
The Indian real estate sector anticipates significant reforms in the Union Budget FY26 to address challenges and stimulate growth. With suggestions ranging from stamp duty cuts to enhanced affordable housing criteria, industry leaders aim to make housing more accessible while boosting investor confidence. By addressing these demands, the government could set the stage for a robust recovery in 2025, advancing urbanisation and enhancing the sector's role in national development.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
