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As the financial year draws to a close, the housing sector in India anticipates a favorable response from the upcoming Union Budget. With real estate being a significant contributor to the country's economic growth, industry experts and stakeholders are looking for measures that will bolster demand, increase affordability, and attract further investments.

Key Expectations for the Housing Sector

* Increased Tax Deductions for Homebuyers: One of the most anticipated moves is the enhancement of tax benefits under Section 80C and Section 24(b) of the Income Tax Act. Currently, homebuyers can claim a deduction of ?1.5 lakh on principal repayment and ?2 lakh on interest paid. The real estate sector is hoping that these limits will be increased, making home ownership more affordable for the middle class.

* Focus on Affordable Housing: The government's continued focus on the Pradhan Mantri Awas Yojana (PMAY) has led to a boom in affordable housing projects across the country. The housing sector is hoping for more budgetary allocations to extend the scheme's reach and provide further subsidies for low-income groups. This will likely improve access to quality housing for the masses, aligning with the government’s vision of 'Housing for All.'

* Introduction of Tax Relief for Builders: The real estate industry is pushing for tax breaks or incentives for developers, especially for affordable housing projects. By extending tax relief or providing deductions for construction expenses, developers can reduce costs and pass on the benefits to consumers, thereby increasing the supply of affordable homes.

* Subsidy for Interest Rates: Another key demand is the reduction or subsidization of home loan interest rates. Lower interest rates will directly benefit homebuyers and stimulate demand. The government's intervention in this area could spur growth in the housing sector and provide a much-needed boost to the overall economy.

* Incentives for Green Buildings: With sustainability becoming a global priority, the housing sector in India has seen a rise in green building certifications. There is a call for additional incentives or tax benefits for developers who adopt eco-friendly construction practices, which could lead to long-term benefits for the environment and cost savings for homeowners.

* Improved Infrastructure Development: Real estate developers are also hoping for an increase in the allocation for infrastructure development, particularly in Tier-2 and Tier-3 cities. The expansion of roads, public transport, and basic amenities in these areas will enhance the overall attractiveness of real estate investments and create new opportunities for homebuyers.

Conclusion

As the housing sector braces for the Union Budget 2025, there is an optimistic outlook among industry stakeholders. The right budgetary decisions can not only boost home ownership but also play a pivotal role in creating jobs, spurring economic activity, and driving sustainable development. The expectations are high for a policy shift that will make housing more accessible, affordable, and attractive for both buyers and developers alike.