Budget 2025: Will It Meet the Hopes of Home Buyers? Experts Share Their Demands
Discover the key demands experts in the real estate sector are making ahead of Budget 2025. Will the Finance Minister address the pressing needs of home buyers?
Real EstateBudget 2025Home BuyersTax IncentivesAffordable HousingReal Estate NewsJan 22, 2025
Home buyers and industry experts are pinning their expectations on the Finance Minister to introduce measures that can revitalize the housing sector and make homeownership more accessible.
Here's a closer look at the demands being put forward by the real estate experts.
on the Real Estate Sector
The real estate sector plays a crucial role in the Indian economy.
It not only contributes significantly to the GDP but also has a multiplier effect on various allied industries such as construction, materials, and finance.
Over the past few years, the sector has faced several challenges, including regulatory changes, liquidity constraints, and a slowdown in demand.
As a result, the industry is looking towards the government to introduce policies that can boost investor confidence and consumer interest.
Key Demands from Real Estate Experts
1.
Tax Incentives for Home Buyers
One of the most pressing demands is the introduction of additional tax incentives for home buyers.
Experts suggest that increasing the tax deduction limit under Section 80C of the Income Tax Act for home loan principal repayments and interest payments can make homeownership more affordable.
This move could also stimulate demand in the housing market, especially for first-time buyers.
2.
Reduction in GST
Another key demand is the reduction or rationalization of Goods and Services Tax (GST) on residential properties.
The current GST rate of 12% is considered high by many stakeholders.
Lowering this rate could significantly reduce the cost of purchasing a home, making it more attractive for potential buyers.
3.
Simplification of regulatory processes
The real estate sector has faced several regulatory challenges, including the implementation of RERA (Real Estate Regulatory Authority).
While RERA has brought much-needed transparency and accountability, the compliance process remains cumbersome.
Experts are calling for the simplification of these processes to reduce the administrative burden on developers and expedite project approvals.
4.
Incentives for affordable housing
The government's push for 'Housing for All by 2022' has highlighted the importance of affordable housing.
However, the sector still faces several challenges, including high costs and limited availability.
Experts are urging the Finance Minister to provide additional incentives, such as tax breaks and subsidies, to developers who focus on affordable housing projects.
5.
Boosting liquidity in the sector
Liquidity constraints have been a significant hurdle for the real estate sector.
Experts are calling for measures to improve liquidity, such as setting up a real estate investment trust (REIT) and infrastructure investment trust (InvIT) market.
These instruments can attract institutional investors and provide a steady flow of funds to the sector.
Introduction to the Real Estate Industry
The real estate industry in India is a dynamic and crucial sector, contributing significantly to the nation's economic growth.
It encompasses residential, commercial, and industrial properties and is driven by various factors, including economic policies, market trends, and regulatory frameworks.
The sector's performance has a cascading effect on employment, urban development, and infrastructure.
Leading real estate companies are constantly innovating to meet the evolving needs of consumers and the challenges posed by market dynamics.
Conclusion
The real estate sector is closely watching the upcoming Budget 2025, hoping that the Finance Minister will address its key concerns and introduce measures that can revitalize the market.
The demands outlined by experts, if implemented, could go a long way in making homeownership more accessible and boosting the sector's overall health.
As the budget approaches, all eyes will be on the government to see if it can deliver on the industry's expectations.
Frequently Asked Questions
What are the main demands of the real estate sector for Budget 2025?
The main demands of the real estate sector for Budget 2025 include additional tax incentives for home buyers, reduction in GST on residential properties, simplification of regulatory processes, incentives for affordable housing, and measures to boost liquidity in the sector.
Why is the real estate sector important for the Indian economy?
The real estate sector is crucial for the Indian economy as it contributes significantly to the GDP and has a multiplier effect on various allied industries such as construction, materials, and finance. It also plays a vital role in urban development and employment generation.
What challenges is the real estate sector currently facing?
The real estate sector is facing several challenges, including regulatory changes, liquidity constraints, and a slowdown in demand. These challenges have affected investor confidence and consumer interest in the housing market.
How can tax incentives benefit home buyers?
Tax incentives for home buyers, such as increasing the tax deduction limit under Section 80C of the Income Tax Act, can make homeownership more affordable. This can stimulate demand in the housing market, especially for first-time buyers.
What are the benefits of reducing GST on residential properties?
Reducing the GST on residential properties can significantly lower the cost of purchasing a home, making it more attractive for potential buyers. This can help in boosting the demand for housing and overall market activity.
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