The Union Budget 2025 presents a comprehensive framework for accelerating economic growth, driving urban transformation, and promoting real estate development. Strategic investments in infrastructure, MSMEs, and futuristic urban development are expected to stimulate economic expansion.
Relief for Middle-Class Homebuyers
The budget provides significant relief for middle-class homebuyers, boosting consumption and indirectly stimulating housing demand. Key highlights include:
– Zero tax on income up to Rs 12 lakh, increasing disposable income and affordability for housing.
– Tax reforms rationalizing TDS and TCS rates and thresholds, simplifying compliance.
Tax Incentives for Residential Property Investors
The budget introduces favorable tax provisions encouraging residential property investments, particularly in secondary markets and rental housing.
– Nil valuation for two self-occupied properties, compared to one previously.
– Reduced compliance for landlords through simplified TDS on rent.
Rs 1 Lakh Crore Urban Challenge Fund for Futuristic Cities
The creation of a Rs 1 lakh crore Urban Development Fund aims to catalyze large-scale infrastructure upgrades, unlocking real estate potential in rapidly urbanizing areas.
SWAMIH Fund Expansion for Stalled Residential Projects
The allocation of Rs 15,000 crore to the SWAMIH Fund addresses the challenges faced by homebuyers and developers in stalled residential projects, providing relief to over 1 lakh housing units.
Revamped UDAAN Scheme for Connectivity Enhancement
The restructured UDAAN scheme enhances connectivity, driving real estate demand in secondary markets. The scheme will connect 120 new locations, serving over 4 crore passengers over the next decade.
PM Gati Shakti and Tourism Infrastructure Development
Opening PM Gati Shakti data to private players and developing 50 top tourist destinations expands real estate opportunities across India, promoting tourism infrastructure development.
Support for Global Capability Centres (GCCs)
A national guidance framework for GCCs enhances India’s position as a hub for multinational operations, boosting demand for commercial real estate.Rs 1.5 Lakh Crore Support for MSMEs
The budget allocates Rs 1.5 lakh crore to the MSME sector, emphasizing capacity expansion and industrial growth.
Impact on Affordable Housing
Although the budget offers limited direct benefits for affordable housing, improvements in connectivity, infrastructure, and disposable income may indirectly support demand in the medium term.
Pro-Growth Budget Helps Real Estate Sector and Economy
The Union Budget 2025 is a pro-growth, investment-oriented framework aimed at accelerating economic development. Its emphasis on urban transformation, middle-class relief, and infrastructure development is expected to drive demand across residential, commercial, and industrial real estate segments.
Image Courtesy: The Financial Express
