Policy Push Key To Affordable Housing, Says Rakesh Reddy

Expanding the affordable housing segment through increased price caps and enhanced tax benefits for homebuyers is critical. Such steps will not only stimulate demand, but also align with the government’s vision of Housing for All -- Rakesh Reddy C, Director, Aparna Constructions

Hyderabad: The upcoming Union Budget 2025-26 could serve as a turning point for India’s real estate sector, fostering growth, sustainability, and inclusivity, according to Rakesh Reddy, Director, Aparna Constructions. Highlighting the sector’s expectations, Reddy emphasised the need for robust policy support to boost demand and enhance affordability in housing.

On key priorities, Reddy advocated for granting infrastructure status to the real estate sector, streamlining approval processes, and improving access to funding. Rationalizing the Goods and Services Tax (GST), increasing tax benefits for housing loans, and reducing long-term capital gains tax on real estate investments were identified as essential measures.

“Expanding the affordable housing segment through increased price caps and enhanced tax benefits for homebuyers is critical. Such steps will not only stimulate demand, but also align with the government’s vision of Housing for All,” Reddy said.

He also called for simplifying GST on under-construction properties and providing clarity on Input Tax Credit policies to improve cost efficiency for developers and affordability for buyers.

The importance of infrastructure investment in Tier 2 and Tier 3 cities was another focal point. Increased allocation for urban infrastructure would enhance living standards and attract private investment, unlocking the potential of emerging real estate markets.

Rakesh Reddy also urged the government to introduce financial incentives for sustainable building practices. Tax rebates or grants for projects focusing on renewable energy, water conservation, and energy efficiency could align the sector with India’s climate goals.

Lastly, improving liquidity for developers through single-window clearance mechanisms and access to low-cost financing was highlighted as a means to streamline operations and ensure timely project delivery.

The proposed measures, if implemented, could transform the real estate landscape in India, Rakesh Reddy concluded, creating a more sustainable and inclusive housing market.