Demand For Homes and Growth

Thanks to increased development, expanding cities, and people’s rising need to own houses, India’s real estate market has been explosive. This industry is quite significant in our economy as it contributes around 8-9% of the GDP of the nation. With the Union Budget 2025 just announced, everyone in the business is hoping for changes that may address present issues and let the sector grow even more.

Making Own Home Ownership Simple

For most Indians, having a house represents a dream. But for many, rising home prices and uncomfortable lending rates make that goal difficult. Under Section 24(b), the tax deduction on house loan interest is limited to ₹2 lakh annually at present. The difficulty is Although loan amounts and property prices have hugely gone up, this cap has not changed since 2014.

For example, if you had a ₹50 lakh debt, depending on the early years particularly, you may find yourself paying around ₹4.2 lakh in interest annually. However, you are not actually receiving any relief with the present deduction ceiling. This ceiling should be increased to ₹4 lakh so that homeowners may get actual help and make houses more reasonably priced.

Dealing with Growing Building Costs

Building houses are not cheap, and expenses keep rising. Land, building materials like cement and steel, and even personnel expenses are becoming more expensive. This renders less, well, attractively priced properties or homes.

The budget might assist by streamlining GST on building materials, therefore lowering the cost of building decent houses. Encouragement of environmentally friendly, sustainable materials may also help to lower long-term expenses, therefore improving the greenness of houses rather than just trying to lower down the costs or property taxes.

Tax Changes That Count

People’s purchase of houses is much influenced by taxes. The tax benefit on house loan interest is now fixed at 2 lakh; principal repayments go under Section 80C, which also covers items like your Provident Fund. For big loans, there leaves little space for extra tax savings.

What would be helpful?

✦From 2 lakh, raise the interest deduction ceiling to 4 lakh.

✦Rather than grouping home loan principal instalments under 80C, provide separate tax deductions for each.

✦Give home loan interest tax advantages even under the new tax code ( Section 115BAC). For first-time homeowners, this would lessen their financial weight.

Improving Building structure

Real estate is much different depending on the good structure of the buildings. Think of better roads, dependable public transit, and better utilities; these factors increase the appeal of a location for living.

More money in the next budget might be pumped into upgrading infrastructure in tier-II and tier-III smaller cities. This would not only make houses more accessible but also inspire builders to concentrate on reasonably priced homes outside of metropolitan areas.

Encouragement of smart cities with effective water, waste, and energy management might also assist real estate in developing towns to flourish, therefore lessening demand on major cities and supporting economic growth.

More environmentally friendly for healthier locations

As cities expand fast, we are losing priceless green areas. This influences not just the surroundings but also our health and general welfare.

The budget is trying to promote better advancements by:

✦Providing tax breaks for initiatives like environmentally friendly design, parks, and gardening.

✦Offering rewards for houses’ solar panels, rainwater collecting systems, and energy-efficient appliance installation.

✦These actions not only would make living areas better but also help developers to make sustainable buildings.

Conclusion

India’s economy also goes around real estate, so the Union Budget 2025 presented may show good results for the buyers. It is seen that the government has let millions of Indians realise their ambition of owning a house by raising tax advantages for homebuyers, lowering building costs, enhancing infrastructure, and endorsing green living. These developments will help the economy and create a more sustainable future for everybody, not just benefit the housing market.