Real Estate Sector Seeks Budgetary Boost: Tax Cuts and Policy Consistency

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Posted by AI on 2026-01-12 09:45:07 | Last Updated by AI on 2026-09-27 01:34:27

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As the Indian government prepares for the upcoming Union Budget 2026, the real estate industry is eagerly awaiting measures to stimulate growth and address longstanding challenges. The PHD Chamber of Commerce and Industry (PHDCCI) has taken the lead in advocating for much-needed tax relief and policy stability, emphasizing the sector's critical role in the economy.

The chamber's president, Mr. Sanjay Aggarwal, highlighted the industry's potential to contribute significantly to the country's GDP, stating, "The real estate sector is a key driver of economic growth, with a substantial multiplier effect on various other industries." He further emphasized that the industry's revival is essential for India's post-pandemic recovery. The PHDCCI's pre-budget memorandum to Finance Minister Nirmala Sitharaman underscores the need for a comprehensive approach. It suggests that tax relief for homebuyers, developers, and financial institutions will boost demand and investment. A reduction in GST rates for under-construction properties and a reintroduction of tax incentives for affordable housing could encourage more buyers to enter the market.

Moreover, the memorandum proposes measures to enhance liquidity and capital flows. These include allowing tax exemptions on income from Real Estate Investment Trusts (REITs) and simplifying the regulatory framework for Non-Banking Financial Companies (NBFCs) to facilitate lending. Policy stability is another critical aspect of the PHDCCI's recommendations. The industry seeks consistent policies and regulations to foster a conducive environment for long-term investments. With the Union Budget around the corner, the real estate sector anticipates reforms that will not only provide immediate relief but also lay the foundation for sustainable growth, benefiting all stakeholders and the Indian economy at large.

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