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With the Union Budget 2025-26 on the horizon, the real estate sector is anticipating key reforms that will drive growth, enhance affordability, and strengthen its contribution to India’s economic advancement. The government has shown its commitment to infrastructure and housing, and this year’s budget could address pressing challenges in our sector. One impactful measure would be increasing the tax deduction limit on housing loan interest payments. The current ?2 lakh cap has not been revised for years, despite rising property prices and interest rates. Raising it to ?5 lakh could provide significant relief to homebuyers, stimulate demand in mid- and upper-income housing, and boost the residential market.

Another key expectation is granting infrastructure status to the real estate sector. This would lower borrowing costs for developers and attract institutional investments, enabling affordable housing at a larger scale. Coupled with urban infrastructure development, this reform could catalyze growth and strengthen sustainable city planning.

We also hope for the introduction of a single-window clearance mechanism for real estate projects. The current maze of approvals often leads to delays and higher costs. Streamlining this process would enhance ease of doing business and ensure timely project delivery, benefiting both developers and homebuyers.

Targeted incentives for the affordable housing segment are also critical. Reducing GST rates or providing subsidies for such projects would encourage developers to address this vital market while ensuring affordability for buyers. Initiatives like these would support the government’s ‘Housing for All’ vision, meeting the aspirations of both urban and rural populations.

Liquidity and access to finance remain vital concerns. Measures like reducing the cash reserve ratio (CRR) and other monetary policy interventions could inject liquidity, enabling banks to offer more competitive home loan rates. This would directly benefit homebuyers and sustain the housing sector’s growth.

The real estate sector is integral to India’s economy, significantly contributing to GDP and employment. At Crest Ventures, we are committed to creating spaces that inspire communities and drive sustainable development. We look forward to a budget that empowers developers, homebuyers, and investors, paving the way for a resilient and prosperous future."

 

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