Union Budget 2025-26: Real Estate Firms Celebrate Tax Relief Measures

The government's plan to cut income tax rates in the Union Budget 2025-26 has been widely welcomed by real estate firms, investors, and experts. This move is expected to boost disposable income and spur investments in the residential housing market, parti

Real EstateTax ReliefAffordable HousingReitsMiddle ClassReal Estate MumbaiFeb 02, 2025

Union Budget 2025-26: Real Estate Firms Celebrate Tax Relief Measures
Real Estate Mumbai:Shares of Indian real estate companies surged on Saturday following the government's announcement of measures to boost the spending power of the middle class in Asia’s third-largest economy.
These measures are likely to stimulate investments in the residential housing space.

India’s plan to cut income tax rates in the 2025-26 budget has been warmly received by investors and experts, as it aims to boost disposable income in a country that has been grappling with sluggish consumption in recent quarters.
The Nifty realty index climbed 3.3%, marking its best performance in nearly eight months.
Eight out of the ten members in the sub-index were trading higher, with prominent realtors such as Prestige Estates, DLF, and Sobha witnessing gains between 2% and 6%.

Frequently Asked Questions

What is the main benefit of the tax relief measures announced in the Union Budget 2025-26 for real estate companies?

The main benefit is the potential boost in disposable income for the middle class, which is expected to increase demand for residential housing and other real estate investments.

How did the Nifty realty index perform following the budget announcement?

The Nifty realty index rose 3.3% on the day of the announcement, marking its best performance in nearly eight months.

Which real estate companies saw significant gains after the budget announcement?

Prominent real estate companies such as Prestige Estates, DLF, and Sobha saw gains between 2% and 6%.

What is the significance of allowing homeowners to claim two self-occupied properties as tax-free?

This provision minimizes tax pressures, promotes homeownership, and facilitates real estate investment, especially in second homes and Tier 2 and 3 cities.

How do experts like Anuj Puri and Badal Yagnik view the impact of these tax relief measures on the real estate market?

Experts like Anuj Puri and Badal Yagnik believe that these measures will strengthen demand for affordable housing, boost disposable income, and spur consumption levels and real estate investments.

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