Affordability, Tax Relief
One of the primary expectations from Budget 2026 revolves around enhancing affordability for both homebuyers and developers. The sector is urging the government
to consider measures that could make homeownership more accessible. This includes potential adjustments to income tax slabs, which could leave more disposable income in the hands of potential buyers. Further, industry players are seeking a reduction in Goods and Services Tax (GST) rates on construction materials to ease project costs. They're also pushing for tax incentives for first-time homebuyers, aiming to stimulate demand in the housing market. These moves are viewed as crucial to making property ownership achievable for a broader segment of the population, thereby bolstering overall sector growth. The aim is to create an environment where more people can afford to invest in property, thereby driving both residential and commercial real estate forward.
Tax Rationalization Demands
A significant focus area within the real estate industry's expectations for Budget 2026 is tax rationalization. Stakeholders are advocating for a simplification of the tax structure to reduce compliance burdens and foster a more transparent business environment. Specific requests include streamlining the process for tax deductions and exemptions, which could alleviate administrative complexities. The industry also suggests a review of capital gains tax rules, potentially offering more favorable terms for long-term investments in real estate. The goal is to make the tax system more efficient and predictable, which could attract more investments and promote sustainable growth in the sector. Simplification of tax regulations can also reduce disputes, encouraging a more streamlined and business-friendly approach, that benefits both developers and investors. Tax rationalization can bring clarity and transparency, facilitating better financial planning.
Boosting Liquidity, Compliance
Industry bodies, including those representing Micro, Small, and Medium Enterprises (MSMEs) and startups, are actively seeking measures to improve liquidity within the sector. Their wishlist for Budget 2026 includes financial relief and easier compliance. One critical demand is for a dedicated fund or scheme that offers financial support to real estate projects, ensuring a steady flow of capital. Alongside this, there's a push for reduced compliance burdens, making it simpler for businesses to navigate regulations and obtain necessary approvals. Simplified processes for project financing and approvals are considered vital for streamlining operations and promoting faster project completion. This dual approach – addressing liquidity challenges and simplifying regulatory landscapes – is aimed at empowering businesses and fueling a more robust expansion in the real estate sector. The goal is to create a supportive environment to encourage more developers to start new projects.
