We anticipate major announcements aimed at benefiting the real estate and infrastructure sectors, which are critical growth engines for the economy and support numerous allied industries.
One key area of focus should be the rationalization of taxes and duties levied on homebuyers, which in many states exceed 12% of a property’s value. In the previous budget, the finance minister urged state governments to address this issue, but significant progress has yet to be made. We hope this budget includes provisions to streamline these charges and provide much-needed relief to homebuyers. Additionally, we urge the government to revisit the long-term capital gains (LTCG) tax on real estate and consider providing relief in this area.
Steps toward GST reforms for the real estate sector are also necessary to make it a more attractive investment option. Furthermore, increasing the tax deduction limit under Section 24(b) for home loan interest, currently capped at Rs2 lakh per annum, to at least Rs5 lakh would provide substantial financial relief. This is particularly relevant for homebuyers in metropolitan cities, where high property prices necessitate large home loans. Such a move could boost demand and promote homeownership.
Introducing industry status for the real estate sector is another long-pending demand. This would enable developers to access capital at more competitive rates, making housing more affordable for buyers.
The government should also consider increasing budgetary allocations for infrastructure development, including metro networks, multimodal corridors, and last-mile connectivity projects. These investments would not only improve urban mobility but also stimulate the growth of commercial real estate in metro cities and their peripheral areas, fostering economic activity and attracting investment.
Overall, a balanced approach in the budget—rationalizing taxes, incentivizing homebuyers, and strengthening infrastructure—would play a crucial role in driving growth in the real estate and infrastructure sectors while contributing to broader economic progress.
