Realtors seek tax deduction increase and housing reforms in Union Budget 2025

Realtors are seeking significant changes in the upcoming Union Budget 2025 to enhance housing sales and support homebuyers. Key demands include raising the income tax deduction limit for housing loans from Rs 1.5 lakh to Rs 5 lakh and adjusting affordable housing criteria to focus on carpet area instead of price caps. The real estate sector is experiencing a decline in unsold inventory, particularly in major cities. Realtors are advocating for reduced stamp duty and increased subsidies for affordable housing projects to stimulate demand, especially in the Rs 40 lakh segment. Additionally, industry leaders are calling for a reduction in GST on construction materials and the reinstatement of 100% tax exemptions for affordable housing. They also urge the government to grant industry status to real estate and streamline operations through a single-window clearance system.