Union Budget 2025-26: A Boon for Real Estate and Infrastructure
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has introduced several measures to bolster the real estate, housing, and infrastructure sectors. Jitendra Mehta, President of CREDAI-MCHI Thane, lauded the budget for its growth-o
Union BudgetReal EstateInfrastructureCredaimchi ThaneNirmala SitharamanReal Estate MumbaiFeb 02, 2025
Jitendra Mehta, President of CREDAI-MCHI Thane, described the budget as 'growth-oriented,' with a strong emphasis on infrastructure development and relief for the middle class.
The government has significantly increased funding for the affordable housing segment to promote inclusivity and sustainable urban development.
A key measure is the enhancement of the tax deduction limit on home loan interest payments from ₹2 lakh to ₹5 lakh, making homeownership more affordable and stimulating demand.
Additionally, regulatory reforms under the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST) continue to improve transparency and accountability in the sector.
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 resolved.
The government remains committed to the National Infrastructure Pipeline (NIP), investing in roadways, highways, and urban infrastructure to enhance connectivity and economic growth.
Sustainable urban development policies, particularly in energy and transportation, are set to improve quality of life while also driving the real estate sector and job creation.
Key Announcements for the Real Estate Sector
1.
TDS Limit on Rent Increased – The threshold for tax deduction at source (TDS) on rent has been raised to ₹6 lakh per year, improving liquidity for property owners.2.
Updated Return Window Extended – Taxpayers now have four years instead of two to file updated returns, offering greater flexibility.3.
Eased Regulations for Self-Occupied Property – New relaxations have been introduced for self-occupied properties.4.
Income Tax Relief for the Middle Class – The income tax exemption limit has been increased to ₹12 lakh, providing financial relief and boosting consumer spending.
Mehta emphasized that these provisions would stimulate investment in real estate, drive home sales, and support economic expansion.
'With increased allocations for infrastructure and tax benefits for the middle class, this budget lays a solid foundation for sustained economic growth,' he stated.
CREDAI-MCHI Thane is a leading association of real estate developers in the Thane region, advocating for policies that promote sustainable and inclusive urban development.
The organization plays a crucial role in bridging the gap between the government and the real estate industry, ensuring that regulatory reforms and investment strategies align with the needs and aspirations of the community.
The government's focus on infrastructure and affordable housing is expected to have a multiplier effect on the economy, driving job creation and improving the quality of life for millions of Indians.
With these initiatives, the real estate and infrastructure sectors are poised for robust growth in the coming years.
Frequently Asked Questions
What is the main focus of the Union Budget 2025-26?
The main focus of the Union Budget 2025-26 is on strengthening the real estate, housing, and infrastructure sectors, with a strong emphasis on infrastructure development and relief for the middle class.
How does the increased tax deduction limit on home loan interest benefit homebuyers?
The increased tax deduction limit on home loan interest from ₹2 lakh to ₹5 lakh makes homeownership more affordable and stimulates demand in the real estate market.
What regulatory reforms have been introduced under RERA?
Regulatory reforms under RERA include the registration of approximately 1.38 lakh real estate projects and 95,987 real estate agents, along with the resolution of 1.38 lakh complaints, improving transparency and accountability in the sector.
What is the National Infrastructure Pipeline (NIP) and its significance?
The National Infrastructure Pipeline (NIP) is a government initiative to invest in roadways, highways, and urban infrastructure, enhancing connectivity and economic growth. It is significant for sustainable urban development and job creation.
What are the key announcements for the real estate sector in the Union Budget 2025-26?
Key announcements include an increased TDS limit on rent to ₹6 lakh per year, extended updated return window to four years, eased regulations for self-occupied properties, and increased income tax exemption limit to ₹12 lakh.
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