The Union Budget 2025 has introduced several game-changing measures aimed at revitalizing India’s real estate sector. From tax reliefs to infrastructure development and support for stalled housing projects, the government’s initiatives are expected to boost demand and encourage investment in the property market.
Income Tax Reliefs to Spur Housing Demand
One of the most notable changes in Budget 2025 is the revision of personal income tax rates. By reducing tax liabilities, the government aims to increase disposable income, making homeownership more affordable for the middle class. Additionally, the tax exemption for two self-occupied properties eliminates the tax burden on notional rental income for second homes, encouraging individuals to invest in multiple properties.
SWAMIH Fund 2: Addressing Stalled Housing Projects
The success of the Special Window for Affordable and Mid-Income Housing (SWAMIH) has prompted the government to launch SWAMIH Fund 2, with an allocation of ₹15,000 crore. This initiative is expected to facilitate the completion of nearly 1 lakh housing units in stalled projects, bringing much-needed relief to homebuyers and boosting confidence in the real estate sector.
Infrastructure Development to Drive Realty Growth
Recognizing the vital role of urban infrastructure in real estate demand, the government has set up an Urban Challenge Fund with an outlay of ₹1 lakh crore. This fund will be used to improve urban infrastructure, fostering growth in both metropolitan and semi-urban areas. Moreover, the allocation of ₹1.5 lakh crore for Public-Private Partnership (PPP) infrastructure projects is expected to enhance connectivity and boost real estate investments.
Positive Outlook for the Real Estate Market
With these budgetary measures, the real estate sector is set to witness increased housing demand, improved urban infrastructure, and the resolution of delayed projects. These initiatives not only benefit homebuyers but also provide a significant boost to developers and investors.
The government’s commitment to enhancing affordability and infrastructure signals a strong future for real estate in India. If you are considering investing in property, now may be the right time to capitalize on these favorable policies and incentives.
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