spot_img
HomeInfrastructureHousingNAREDCO Calls for Boost to Affordable Housing, Tax Reforms in Union Budget...

NAREDCO Calls for Boost to Affordable Housing, Tax Reforms in Union Budget 2025

NAREDCO Calls for Boost to Affordable Housing, Tax Reforms in Union Budget 2025

With the Union Budget 2025 on the horizon, the real estate sector has presented a robust wishlist aimed at promoting growth, affordability, and sustainability. Leading voices, including Dr Niranjan Hiranandani, Chairman of NAREDCO, and other industry leaders, have called on the government to introduce reforms that will address affordability challenges, streamline investments, and foster urban development.

A central demand is an increase in the home loan interest tax deduction limit under Section 24(b) from ₹2 lakh to ₹5 lakh, which would enhance housing affordability and boost demand. Dr Hiranandani also advocated for more funding for affordable housing to reverse the sector’s recent negative growth and achieve sustainable urbanisation. Granting infrastructure status to the housing sector is another key recommendation, as it would attract new investments and streamline development. Addressing rental housing challenges, NAREDCO has urged the government to abolish notional income tax on unsold properties held as stock-in-trade and provide tax exemptions of up to ₹3 lakh for rental income from houses priced below ₹50 lakh.

Shishir Baijal, Chairman of Knight Frank India, highlighted the affordability gap and suggested increasing the value limit for PMAY (Pradhan Mantri Awas Yojana) homes in metros from ₹35 lakh to ₹50 lakh. He also recommended a separate annual deduction of ₹1.5 lakh for principal repayment under Section 80C, easing affordability and boosting home loans. Calls for capital gains tax reforms include extending the construction completion period under Section 54 from three years to five, recognising the longer timelines needed for modern residential projects. Sustainability also features prominently, with industry experts pushing for green incentives, relaxed FDI norms, and streamlined processes to attract investments in luxury and eco-friendly housing.

Reduced stamp duties and revival of the Credit Linked Subsidy Scheme (CLSS).
Support for slum redevelopment projects, especially in Mumbai, to meet the “Housing for All” goal. Sandeep Ahuja, CEO of Atmosphere Living, remarked, “India has the potential to become a global leader in real estate if policies align with sustainability and innovation.” Similarly, Venkatesh Gopalakrishnan, CEO of Shapoorji Pallonji Real Estate, stressed the need for stability in raw material costs and tax reforms to drive long-term growth. As the Union Budget approaches, these demands reflect a vision of transforming India’s real estate sector into a more inclusive, resilient, and sustainable industry. By addressing these recommendations, the government could create a ripple effect across the economy, benefiting millions of Indians.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -spot_img

Most Popular

Recent Comments

Skip to toolbar