Expected Policy Reforms in Union Budget FY25-26 for Real Estate
The upcoming Union Budget FY25-26 is expected to introduce key reforms to boost growth, affordability, and investment in the real estate sector. Here are the anticipated changes:
- Reintroduction of Input Tax Credit (ITC) – Developers seek the return of ITC to lower construction costs, making under-construction properties more affordable for homebuyers.
- Reduced Holding Period for LTCG – Experts propose reducing the Long-Term Capital Gains (LTCG) holding period from 24 months to 12 months, aligning real estate taxation with other asset classes.
- Higher Tax Incentives for Affordable Housing – Expected reforms include:
- Increased tax deductions for homebuyers.
- Incentives for developers to expand budget-friendly housing, supporting the ‘Housing for All’ mission.
- Standardization of Stamp Duty Rates – Calls for:
- Uniform stamp duty rates across states.
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Reduced stamp duty charges to make property transactions more cost-effective.
Conclusion
The Union Budget FY25-26 is poised to play a pivotal role in shaping the future of India’s real estate sector. With expectations of tax reforms, investment incentives, and sustainable growth initiatives, stakeholders remain optimistic about positive policy shifts.
For homebuyers, investors, and real estate consultants, staying informed and seeking expert financial guidance will be essential to leveraging upcoming opportunities in the evolving real estate landscape. Whether you’re looking to invest in commercial property in Gurgaon, Delhi NCR, or beyond, the right financial planning can help maximize returns in this dynamic market.
