Union Budget 2025 - Key Announcements for the Real Estate Sector
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, outlines several key initiatives aimed at bolstering the real estate, housing, and infrastructure sectors -
Real Estate and Housing:
Affordable Housing: The government has increased funding for the affordable housing segment to promote inclusivity and sustainable urban development. This includes enhancing the tax deduction limit on home loan interest payments from ₹2 lakh to ₹5 lakh, making home purchases more affordable and stimulating market demand.
Regulatory Reforms: The Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST) have brought numerous improvements to the real estate sector, including increased transparency, protection against fraud, timely project deliveries, and measures to prevent misuse of funds. As of January 6, 2025, approximately 1.38 lakh real estate projects and 95,987 real estate agents have been registered under RERA, with 1.38 lakh complaints disposed of across the country.
Infrastructure Development:
National Infrastructure Pipeline (NIP): The government continues to focus on the National Infrastructure Pipeline, aiming to invest in various infrastructure projects across the country. This includes the development of roads, highways, and urban infrastructure to improve connectivity and support economic growth.
Urban Infrastructure: Enhancements in energy and transportation infrastructure are emphasized as indispensable for sustainable urban growth and improved quality of life. Policies fostering infrastructure growth are expected to bolster the housing market while generating jobs and contributing to broader economic development.
View of MR. JITENDRA MEHTA, PRESIDENT, CREDAI MCHI THANE
Yet Another Growth-Oriented Budget with a Special Focus on Infrastructure & the Middle Class. Finance Minister Smt. Nirmala Sitharaman ji has once again presented a growth-driven budget, with a strong emphasis on infrastructure development and relief for the middle class. At first glance, here are some key highlights that stand out.
Key Announcements for the Real Estate Sector:
1. TDS Limit on Rent Increased – The threshold for TDS on rent has been enhanced to ₹6 lakh per year, offering better liquidity management.
2. Updated Return Window Extended – The time limit for filing updated tax returns has been extended from 2 years to 4 years, providing more flexibility for taxpayers.
3. Regulations on Self-Occupied Property Eased – Certain relaxations have been introduced for self-occupied properties.
4. Income Tax Relief for the Middle Class – A major boost comes in the form of an enhanced income tax exemption limit of income upto ₹12 lakh, putting more disposable income in the hands of the middle class.
These provisions are expected to stimulate spending, drive real estate investments, and strengthen the economy. With increased infrastructure allocations and tax benefits, this budget lays a strong foundation for sustainable economic growth.
