Budget 2025: Real estate sector expects necessary reforms in budget, demands to reduce repo rate and stamp duty
New Delhi| Now only a few days are left for the budget to come and various industries are presenting their demands. In this context, the real estate sector has demanded to reduce the challenges faced in its affordable housing sector and consider announcing such policies, as well as to advance infrastructure development and provide easy credit to affordable housing. Is. 2024 saw a strong recovery in the real estate sector, with residential demand hitting an 11-year high and office lease reaching a record 53.3 million square feet.
Venkatesh Gopalakrishnan, group promoter, director of Shapurji Pallonji Real Estate, says there is a need to amend the tax slabs for the middle income group in the budget and stabilize rising raw material prices. This will reduce construction costs and boost demand for affordable housing. Apart from this, considering the regional needs, encouraging green houses and making the housing policy more inclusive, while encouraging single window clearance to ease business will attract investment in this direction. Also, if the repo rate and stamp duty are reduced, the demand for housing is likely to increase further.
The affordable housing category has faced challenges for some time now, with its share in sales falling to 18 per cent from 38 per cent in 2019, says partner Palladian Partners Ltd Piyush Rambhia. For 2025, we hope that the Union Budget will improve the condition of infrastructure for housing, affordable and easy access to loans and reintroduce the crediting linked subsidy scheme and revive the affordable housing category through reforms in view of market realities. Attention should be given to such measures.
Amil Chopra, President, NAR India India, says the real estate sector is expecting necessary reforms in the budget, a big expectation is to reduce GST on brokerage services from 18 per cent with input credit to 5 per cent without input credit, this will reduce both buyers and brokers financial burden There is a need in the budget to provide better incentives for affordable housing with higher tax exemptions on home loans. These measures will help in making houses affordable and attract more investment. Additionally, reducing stamp duty charges and registration fees and reducing interest rates will go a long way in promoting growth in this sector, especially for first-time home buyers.
