Real Estate Sector Expects Policy & Tax Changes in 2025 Union Budget

As India approaches the Union Budget 2025, the real estate sector is optimistic about reforms that could drive growth, improve affordability, and promote sustainability.

Industry stakeholders are seeking policies that address both developer challenges and evolving homebuyer needs. 

The sector also advocates for redefining affordable housing to extend government scheme benefits to a larger population, stimulating demand. 

Vivek Singhal, CEO of Smartworld Developers, supported this proposal, stating that it would align with rising buyer aspirations and changing market dynamics. 

Similarly, Ramani Sastri, Chairman & MD of Sterling Developers, highlighted the need for increased tax relief for homebuyers. He noted that raising the home loan interest deduction limit from Rs 2 lakh to Rs 5 lakh would ease financial pressure and boost affordability. 

Infrastructure investment remains a key demand. Sher Singh Rathore, Founder of BRIC-X INFRA, emphasized that continued infrastructure development will drive housing demand, particularly in Tier II & III cities, while creating jobs across multiple industries. 

With growing emphasis on eco-friendly construction, developers expect tax incentives for adopting sustainable practices. Manik Malik, CFO of BPTP, pointed out that offering tax breaks for green building initiatives would encourage energy-efficient designs and materials, ensuring long-term environmental sustainability. 

Overall, the sector’s expectations center on policy measures that enhance home affordability, promote sustainable construction, and expand housing access, supporting long-term growth in real estate.