Budget 2025, real estate stocks

 

योजना  2025 : As the current price cap of Rs. 45 lakh is considered unrealistic in many metro cities, stock market analysts expect price revision in the affordable housing segment to align with rising development costs।

Budget 2025

Housing buyers and real estate stock investors, both current and future, would be very interested in the Union Budget 2025 sops when it comes to deductions of interest on home loans and changes in price caps in the affordable housing sector। Market participants are trying to fulfill the long-standing demand for the sector's "industry" status and are even anticipating the reintroduction of the Credit-Linked Subsidy Scheme (CLSS) under PMAY for affordable housing।

Since the existing price restriction of Rs 45 lakh is deemed impractical in many metro areas, Amnish Aggarwal of PL Capital stated that he anticipates price revisions in the affordable housing market to reflect escalating building costs. He wants the Credit-Linked Subsidy Scheme (CLSS) to be reinstated under PMAY. Prior to its discontinuation, the CLSS offered affordable housing subsidies.

In order to make homeownership more affordable, Aggarwal stated that he also anticipates raising the tax deduction ceiling on home loan interest from the existing Rs 2 lakh.

Furthermore, according to him, giving the real estate sector industry status might increase investment and open up a number of advantages.

The tax refund for housing loans, which is now limited to Rs 2 lakh annually, has long been demanded to be increased, according to Sauvik Banerjjee, MD & CEO of Ziki.

Additionally, the sector has long pushed for industrial classification, which, if approved, may result in more accessible finance and simplified rules. In addition, it would be ideal to increase the affordable housing threshold from Rs 45 lakh to Rs 75–80 lakh. It is anticipated that the government would implement specific tax breaks for developers who use sustainable construction methods.

The next 2025 Budget is anticipated to provide substantial support for the real estate sector, with requests for industry status, rationalization of stamp duty, and incentives for affordable housing, according to Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Important anticipations include improving tax deductions for home loan interest and updating the Pradhan Mantri Awas Yojana thresholds.

"The government places a lot of emphasis on the real estate industry, especially when it comes to fostering affordable housing, increasing economic activity, and creating jobs. The government has previously taken a number of steps to help the industry, and the next Budget 2025 is likely to continue to prioritize infrastructure development and affordable housing," stated Ajay Garg, CEO of SMC Global Securities.