New Delhi: The property rates have skyrocketed in the last 1-2 years and the Middle class is finding it extremely difficult to fulfill the dream of their own home. In Delhi-NCR, Lucknow and Bhopal, the price of a small 2BHK apartment has now crossed approximately Rs 50 lakh. Notably, in Delhi, Noida, Greater Noida and Gurugram, the prices are far too high.
Meanwhile, several reports of various real estate consultants have reported that the luxury apartments are selling at a very fast rate. The real estate sector is hoping for a major announcement in Budget 2025 which will be presented by Finance Minister Nirmalal Sitharaman.
Budget 2025: Real estate sector expectations
While presenting the Budget of 2024-25, the Modi 3.0 government in July had assured to make it easier for the middle class to buy houses. The industry players and the homebuyers are expecting the government to declare something concrete on this aspect in the Budget. At the same time, the government can also focus on the biggest demand of the real estate sector to grant it the status of an industry.
The cost of land and building materials has significantly increased in the last few years, resulting in rates of flats and land going high. The real estate sector wants the government to focus on this and announce some relief measures so that it becomes financially easy to buy homes. Not only this, One Group Director Udit Jain said that the government should consider introducing a credit linked subsidy scheme for home buyers, so that people can comfortably buy houses at affordable prices.
Budget: What Real estate sector players are demanding
Jaish Chorariya, Vice President of Crest Ventures Limited, said that the government needs to exempt the income tax law to ensure an increase in the growth of the real estate sector. The tax exemption limit of Rs 2 lakh on home loan interest has not been changed over the years, whereas both interest rates and the price of houses have increased in the market. This is reducing the demand in the country. The government can raise this limit to 5 lakh rupees.
Assotech Group Chairman Sanjeev Srivastava demanded some announcements which could help people buy affordable houses across the country. The number of houses in this segment has come down rapidly in the last few years and due to this, the lower income group has withdrawn from buying houses or investing in real estate. In such a situation, the government can introduce a credit linked subsidy scheme.
To increase the demand in the real estate sector, the government can take measures to cut
GST. At the same time, it can provide some relief to the industry to promote affordable housing. Not only this, the government can also expand the Pradhan Mantri Awas Yojana again.
Budget 2025 expectations: India’s real estate market faces challenges with soaring home prices impacting the middle class. The sector anticipates Budget 2025 will address affordability concerns. Key demands include increasing the home loan interest tax exemption limit, a credit-linked subsidy scheme, and GST reduction to boost affordable housing. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
