The Union Budget 2025 must prioritize sustainable and inclusive housing to address India’s growing urban and rural needs. Increased allocations for PMAY and infrastructure projects, particularly in Tier II and III cities, are essential to support affordable and mid-income housing.
The industry wants the home loan interest tax rebate to increase from ₹2 lakhs to ₹5 lakhs, the house value cap for PMAY benefits to rise to ₹50 lakh in urban areas from ₹35 lakhs, and rental income tax exemptions to be enhanced to ₹3 lakhs for properties priced up to ₹50 lakhs. Extending the timeline for capital gains exemption from 3 years to 5 years is also considered critical for driving investments.
The budget should also focus on green-certified buildings and eco-friendly construction by allocating funds for green financing schemes and energy-efficient housing. These measures will strengthen the real estate sector, ensure affordable housing access, and support India’s goal of becoming a developed nation by 2047.”
