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As the Union Budget draws near, real estate industry leaders are hoping for measures to boost affordable housing, ease regulations, and drive market growth.

One major demand is tax relief. Niranjan Hiranandani, Chairman of NAREDCO, suggests increasing the tax deduction limit on home loan interest from Rs 2 lakh to Rs 5 lakh. He also calls for granting infrastructure status to the housing sector, which would lower borrowing costs and make financing easier. Hiranandani also recommends expanding rental housing and reducing individual tax rates to encourage investment and improve disposable income.

Affordable housing remains a top priority. Hiranandani stresses the need to remove notional income from house property held as stock-in-trade to help create more rental housing and align with the “Housing for All” goal.

Anuj Puri, Chairman of ANAROCK Group, is pushing for the revival of the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) to help first-time homebuyers. He also calls for releasing government-controlled land for affordable housing projects and increasing the Rs 45 lakh price cap for affordable homes in high-cost cities like Mumbai. Puri points out that affordable housing, particularly homes under Rs 40 lakh, has seen a decline in demand since the pandemic.

Anshuman Magazine, Chairman of CBRE India, highlights the rising costs of construction and borrowing. He suggests revising the affordable housing price cap, offering tax incentives for REIT investments, and increasing home loan interest tax deductions. Magazine also proposes reducing GST rates and encouraging the use of green building technology for sustainable growth.

Ritesh Mehta, Senior Director at JLL India, believes that granting industry status to real estate would allow developers to access cheaper loans, reducing construction costs and making homes more affordable.

Real estate contributes nearly 7% to India’s GDP, and industry leaders believe these measures will strengthen the sector and support economic growth. They hope that focusing on affordable housing and infrastructure will help the residential market bounce back in 2025.

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