Real Estate Sector Budget 2025: Government Allows Benefits on Two Self-Occupied Properties
Manju Yagnik, Senior Vice President, NAREDCO Maharashtra, discusses the implications of the latest budget for the real estate sector. The government has allocated Rs 11.21 lakh crore for FY26, reaffirming its commitment to the sector.
Real EstateBudget 2025Tax BenefitsSelfoccupied PropertiesNaredco MaharashtraReal Estate MaharashtraFeb 01, 2025
Manju Yagnik, Senior Vice President of NAREDCO Maharashtra, has expressed optimism about the new measures introduced by Finance Minister Nirmala Sitharaman.
One of the most notable changes is the allowance of tax benefits on two self-occupied properties, a move that is expected to have far-reaching implications for homeowners and investors alike.
NAREDCO Maharashtra, a leading real estate association, has been at the forefront of advocating for policies that support the growth of the real estate market.
The organization has long emphasized the need for incentives that can boost demand and facilitate the construction of more homes.
Information
The real estate sector in India has faced several challenges in recent years, including a slowdown in demand, increased competition, and regulatory changes.
The government’s decision to allow tax benefits on two self-occupied properties is seen as a strategic move to inject new life into the sector.
This measure is particularly significant as it addresses the needs of both first-time buyers and those looking to upgrade their living conditions.
Key Highlights of the Budget
1.
Tax Benefits on Two Self-Occupied Properties The government has extended the tax benefits on home loans to two self-occupied properties.
This means that homeowners can now claim tax deductions on the interest paid on home loans for two properties, up to a certain limit.
This is expected to encourage more people to invest in property and improve their living standards.
2.
Increased Allocation for Housing The budget has allocated Rs 11.21 lakh crore for the housing sector in FY26.
This substantial increase is aimed at accelerating the development of affordable housing projects and infrastructure.
The funds will be used to build new homes, improve existing infrastructure, and support the overall growth of the real estate market.
3.
Incentives for Developers The budget includes various incentives for real estate developers to promote the construction of affordable homes.
These incentives include tax holidays, reduced interest rates on loans, and eased regulatory norms.
This is expected to make it more attractive for developers to invest in the sector.
4.
Focus on Infrastructure Development The government has also emphasized the need for better infrastructure to support the growth of the real estate sector.
This includes the development of roads, public transportation, and other essential amenities.
Improved infrastructure is expected to make properties more attractive to buyers and investors.
5.
Support for First-Time Buyers The budget includes measures to support first-time homebuyers.
These include lower interest rates on home loans, subsidies on property taxes, and easier access to financing.
This is expected to make homeownership more accessible and affordable for a larger segment of the population.
Impact on the Real Estate Market
The new measures introduced in the budget are expected to have a positive impact on the real estate market.
They are likely to boost demand, increase housing supply, and improve the overall health of the sector.
The tax benefits on two self-occupied properties are particularly significant as they address the needs of both existing homeowners and new buyers.
This is expected to stimulate the market and drive growth.
NAREDCO Maharashtra's Perspective
Manju Yagnik, Senior Vice President of NAREDCO Maharashtra, has welcomed the budget and its focus on the real estate sector.
She believes that the new measures will help to revitalize the market and create new opportunities for developers and buyers.
Yagnik stated, 'The government’s decision to allow tax benefits on two self-occupied properties is a game-changer.
It will encourage more people to invest in property and improve their living conditions.
We are hopeful that this will lead to a robust recovery in the real estate market.'
Conclusion
The 2025 budget has introduced several significant measures that are expected to have a positive impact on the real estate sector in India.
The allowance of tax benefits on two self-occupied properties, increased allocation for housing, and incentives for developers are all steps in the right direction.
These measures are expected to boost demand, improve housing supply, and support the overall growth of the sector.
With the government’s continued focus on the real estate market, the future looks promising for both homeowners and investors.
Frequently Asked Questions
What are the key highlights of the 2025 budget for the real estate sector?
The key highlights include tax benefits on two self-occupied properties, increased allocation for housing, incentives for developers, focus on infrastructure development, and support for first-time buyers.
What are the tax benefits on two self-occupied properties?
Homeowners can now claim tax deductions on the interest paid on home loans for two properties, up to a certain limit.
How much has the government allocated for the housing sector in FY26?
The government has allocated Rs 11.21 lakh crore for the housing sector in FY26.
What are the incentives for real estate developers in the 2025 budget?
The incentives include tax holidays, reduced interest rates on loans, and eased regulatory norms.
What measures are in place to support first-time homebuyers?
The budget includes measures such as lower interest rates on home loans, subsidies on property taxes, and easier access to financing.
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