Pitch Report: Realty players continue to look for taxation support for buyers and developers in Budget 2025

The asks of the real estate sector from this Union Budget are not very different from what they were in the previous one.

On February 1, when the Finance Minister Nirmala Sitharaman announces the Union Budget 2025-26, the realty players are hoping for taxation support for both home buyers and developers, and revising size and price parameters when defining affordable housing.

In the previous Budget, there was a significant allocation made for urban housing through the Pradhan Mantri Awas Yojana – Urban (PMAY-U) program which got an outlay of Rs 80,671 crore.

But despite the budgetary support, developers continue to face execution challenges such as rising price of raw material and land costs. In such an environment, industry players believe that tax support given to home buyers, in the form of reduced stamp duty and increasing the tax-deduction limit from the current Rs 2 lakh, will encourage more demand and support the developers.