Budget 2025: Can Home Buyers’ Hopes Be Met? Experts Weigh In
The demand for premium properties has remained robust in 2024. However, the supply shortage in the mid and lower mid-segment continues to be a significant concern. As the Budget 2025 approaches, experts are outlining key demands to address these issues an
Budget 2025Real EstateHome BuyersAffordable HousingTax IncentivesReal EstateJan 22, 2025
Despite this positive trend, the mid and lower mid-segment of the market continues to face a significant supply crunch.
As the Budget 2025 looms, industry experts are highlighting several key demands to address these challenges and meet the expectations of home buyers.
The housing market has been a mixed bag in recent years.
While premium properties have seen a surge in demand, driven by a combination of low-interest rates and increased savings during the pandemic, the mid and lower mid-segment has struggled with a lack of supply.
This imbalance has led to rising home prices, making it increasingly difficult for first-time and middle-class buyers to enter the market.
Key Demands for Budget 2025
1.
Increase in Affordable Housing Supply
One of the primary demands from industry experts is an increase in the supply of affordable housing.
This can be achieved through government incentives for developers to build more homes in the mid and lower mid-segment.
Measures such as tax breaks, subsidies, and relaxed zoning laws can go a long way in addressing this issue.
2.
Tax Incentives for First-Time Buyers
To make it easier for first-time buyers to purchase homes, experts are calling for tax incentives such as reduced stamp duty and lower interest rates.
These measures can significantly reduce the financial burden on new homeowners and encourage more people to enter the market.
3.
Relaxation of Lending Criteria
Banks and financial institutions have tightened their lending criteria in recent years, making it harder for many potential buyers to secure loans.
Experts suggest that the government should work with financial institutions to relax these criteria, making it easier for buyers to qualify for home loans.
4.
Investment in Infrastructure
Improving infrastructure in key areas can boost the attractiveness of mid and lower mid-segment properties.
Investments in transportation, schools, and healthcare facilities can make these areas more desirable for families and first-time buyers.
5.
Rent Control Measures
To address the growing concern of rising rental prices, experts are advocating for rent control measures.
This can provide stability for renters and reduce the financial strain on those who are saving to purchase their first home.
Introduction to Key Players
Real Estate Association of India (REAI)
The Real Estate Association of India is a leading organization representing the interests of the real estate industry.
REAI plays a crucial role in shaping policy and advocating for measures that support sustainable growth in the housing market.
National Housing Bank (NHB)
The National Housing Bank is a financial institution that focuses on promoting housing finance in India.
NHB provides financial assistance to housing finance companies and plays a vital role in ensuring the availability of affordable housing loans.
Indian Banks' Association (IBA)
The Indian Banks' Association is a body that represents the interests of banks in India.
IBA works closely with the government and other stakeholders to ensure that financial policies support economic growth and stability.
Conclusion
As the Budget 2025 approaches, the real estate market is at a critical juncture.
Addressing the supply shortage in the mid and lower mid-segment, providing tax incentives for first-time buyers, and improving infrastructure are key to meeting the expectations of home buyers.
By implementing these measures, the government can help create a more balanced and sustainable housing market, benefiting both buyers and the broader economy.
Frequently Asked Questions
What are the main challenges facing the mid and lower mid-segment of the housing market?
The main challenges facing the mid and lower mid-segment of the housing market include a significant supply shortage, rising home prices, and tight lending criteria from financial institutions.
What measures can the government take to increase the supply of affordable housing?
The government can increase the supply of affordable housing through tax breaks, subsidies, relaxed zoning laws, and incentives for developers to build more homes in the mid and lower mid-segment.
How can tax incentives benefit first-time home buyers?
Tax incentives such as reduced stamp duty and lower interest rates can significantly reduce the financial burden on first-time home buyers, making it easier for them to purchase a home.
Why is improving infrastructure important for the housing market?
Improving infrastructure in key areas can make mid and lower mid-segment properties more attractive to buyers. Investments in transportation, schools, and healthcare facilities can boost the desirability of these areas.
What are the benefits of rent control measures?
Rent control measures can provide stability for renters and reduce the financial strain on those who are saving to purchase their first home. This can help create a more balanced and sustainable housing market.
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