After a year of remarkable performance, the industry needs additional support from the Union Budget 2025-26 to maintain this growth trajectory.
Reinstating the enhanced deduction for interest on home loans would boost housing demand, especially in affordable and mid-segment categories, and encourage greater market participation. Targeted benefits, such as reduced stamp duty or subsidies, can make homeownership accessible to millennials and first-time homebuyers, a vital demographic driving housing demand.
Enhanced tax holidays and higher allocations for PMAY-U scheme will further the ‘Housing for All’ vision, expediting urban housing development. Tax benefits or subsidies for eco-friendly construction technologies and materials would support sustainable urban development and align with India’s environmental goals. Lowering GST on under-construction properties and key materials like cement and steel would make housing more affordable and reduce construction costs.
A single-window clearance system would minimize project delays and reduce costs, enabling developers to deliver more efficiently.
These measures will provide the necessary impetus to the real estate sector, supporting its critical role in economic growth and nation-building.
