'Hope Budget 2025-26 Will Drive Economic Growth And Empower Homebuyers,' Says CREDAI-MCHI President Jitendra Mehta
January 28, 2025
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The real estate sector, a cornerstone of economic growth and employment generation, is looking to the Union Budget 2025-26 for much-needed reforms and incentives to benefit both homebuyers and developers.
The real estate sector, a cornerstone of economic growth and employment generation, is looking to the Union Budget 2025-26 for much-needed reforms and incentives to benefit both homebuyers and developers. Industry leaders hope the government will introduce measures to ensure sustainable economic development while addressing key challenges in the sector.
According to the President of CREDAI-MCHI Thane, Jitendra Mehta, one of the primary expectations is tax relief for homebuyers. Suggestions include increasing the tax deduction limit on home loan interest and allowing interest payments on home loans to be offset against individual income tax liabilities. Additionally, there is a call for enhanced tax benefits for first-time homebuyers.
Developers, too, seek support through policy reforms. Proposals include allowing input tax credits for GST paid on under-construction projects and providing interest subsidies for affordable housing projects. Reviving the 80-IB tax benefit for developers working on affordable housing is also seen as critical for revitalizing this segment.
Key structural changes have been proposed to tackle region-specific issues. For instance, developers in Mumbai, Thane, and the wider Mumbai Metropolitan Region (MMR) have emphasized the need for waiving GST on redevelopment projects, which have become increasingly significant in these urban centers.
Additionally, simplifying the Pradhan Mantri Awas Yojana (PMAY) to suit metropolitan areas and revising the criteria for affordable housing are high on the agenda. Industry experts argue that the current size limit of 60 sq. m. and the price cap of ₹45 lakh are unrealistic in high-cost cities like Mumbai and Thane, proposing an increase to ₹85 lakh–₹1 crore in these areas and ₹60–₹65 lakh in other metros.
Environmental and regulatory concerns have also been flagged. Developers propose that local governments, such as the Thane Municipal Corporation (TMC), take responsibility for addressing certain environmental laws. Similarly, restrictions related to civil aviation and defense, where applicable, should be reviewed and eased to facilitate growth.
Industry leaders are also advocating for the granting of ‘industry status’ to real estate, which would enable easier access to funding and reduce project costs.
The sector remains optimistic that the upcoming budget will strike a balance between economic stability and growth, fostering positive sentiment and further boosting the real estate industry. All eyes are now on the government to deliver reforms that can unlock the sector’s potential and support India’s urban development aspirations.
Source: freepressjournal.in
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