The Union Budget 2025 significantly boosts middle-class home buyers by enhancing affordability and increasing disposable income.
The finance minister announced that under the revised tax regime, individuals earning up to ₹12 lakh (₹12.75 lakh with standard deductions) will be exempt from income tax, strengthening purchasing power and fueling demand in the housing market.
Experts anticipate this initiative will stimulate home ownership, promote savings and drive real estate investments.
Let’s explore the key highlights and the impact of Union Budget 2025 on real estate.
SWAMIH Fund-2 to Complete 1 Lakh Stalled Housing Units
A significant highlight of the 2025 budget is the introduction of SWAMIH Fund-2 with an allocation of 1 lakh stalled housing units with 15,000 crores to complete.
This initiative follows the successful completion of 50,000 homes under the existing SWAMIH scheme and another project in the past.
The expansion of the SWAMIH Investment Fund is expected to stabilize the market, improve housing supply, and boost buyer confidence.
Budget 2025 Increase in TDS threshold on rent & Tax relief for homeowners:
The new limit will be raised from 2.4 lakh to 6 lakh annually. This will benefit small taxpayers and landlords’ The new requirement will make homeowners an eligible taxpayer if they own two self-occupied properties.
This reduces the tax liabilities on deemed rental income and makes property ownership more attractive.
Experts say this change will positively impact the rental housing market, promote homeownership, and benefit Tier 2 and 3 cities by encouraging residential real estate investments.
₹1 Lakh Crore Urban Challenge Fund for Infrastructure & Growth
The government also announced a new Infrastructure Development Fund of Rs.1 lakh crore to assist city administrations, developers and citizens in better infrastructure governance and planning.
The move is expected to unlock potential real estate and turn cities into major economic hubs.
Further, a national guidance framework for Global Capability Centres (GCCs) will be introduced to attract businesses and increase demand for commercial real estate in metro cities like Bangalore, Hyderabad, Pune and Chennai,, and Tier 1 cities.
No New Policies for Affordable Housing
Despite multiple initiatives, the budget lacks specific incentives for affordable housing.
A key concern for homebuyers was to find affordable housing in the new town on the Lower Experts suggest a national rental housing policy and an updated definition of affordable housing could have further boosted homeownership.
Rising home loan interest rates and outdated housing caps remain barriers for many buyers, highlighting the need for further reforms.
Conclusion
Housing affordability and urban structure are the priority of Budget 2025 annually. This budget benefits homebuyer’s investors and the overall real estate sector.
However, if the country had been free of any housing crisis, much more focus on affordable housing policies could have further strengthened India’s housing market.
FAQs:
Which sector will benefit from the budget in 2025?
The sectors expected to benefit the most from Budget 2025 include Healthcare, Infrastructure, Renewable Energy, Technology & Startups etc.
What is the date of budget 2025?
The Union Budget 2025 is scheduled to be presented on February 1, 2025.
What are the highlights of budget 2025?
Budget 2025 focuses on improving roads, railways, and healthcare while supporting startups and clean energy. It aims to create jobs and grow the economy with more government spending.