Budget 2025: Key Announcements Impacting Real Estate
ECONOMY & POLICY

Budget 2025: Key Announcements Impacting Real Estate

Key takeaways for the real estate sector include:
Income tax relief for the middle class: The finance minister announced zero income tax for individuals earning up to Rs 12 lakh annually, providing a major consumption boost. This move is also expected to strengthen demand for affordable housing. Additionally, the new income tax bill will retain nearly 50 per cent of existing provisions while introducing personal tax reforms and rationalising TDS and TCS regimes by streamlining rates and thresholds.
Tax benefits for residential property investors: Investors can now claim nil valuation for two self-occupied properties, instead of just one - a positive move for residential real estate investment. The simplified TDS on rent decreases the compliance burden and enhances liquidity for landlords and will positively impact the rental housing market, especially in metro cities. Previously, homeowners could claim only one self-occupied property as tax-free; now, they can claim two - thereby removing taxation on notional rental income from a second home. This step minimises tax pressures, promotes homeownership, and facilitates real estate investment, especially in second homes and Tier 2 and 3 cities. Middle-class homebuyers, landlords, and investors can now benefit from reduced tax liabilities, better affordability, and less compliance hassles. By simplifying financial constraints and tax rules, the budget has made property ownership and rental housing more accessible. This gives a significant fillip to the real estate sector, specifically to and housing demand.
Rs 1 trillion urban challenge fund for new-age cities: The establishment of this massive urban development fund will enhance infrastructure, unlock real estate potential, and transform cities into major growth hubs.
SWAMIH fund allocation of Rs 150 billion: This initiative will facilitate the completion of over one lakh stalled residential units, providing much-needed relief to homebuyers, especially in the National Capital Region (NCR).
Revamped UDAAN scheme to improve connectivity: The restructured UDAAN scheme aims to connect 120 new destinations and serve over four crore passengers in the next decade. Greenfield airports in Bihar and other regions will be developed to support this expansion. This enhanced connectivity is expected to boost real estate demand in Tier-II and Tier-III cities.
PM Gati Shakti data access for private sector & tourism & warehousing infrastructure boost: The government will open PM Gati Shakti data to private players, while 50 top tourist destinations will be developed in collaboration with state governments. Additionally, hotels will be included in the harmonised scheme for tourism infrastructure, leading to enhanced real estate opportunities in major tourist hubs. This will also benefit the warehousing sector across the country.
Support for Global Capability Centres (GCCs): A national guidance framework will be introduced to help states attract and promote GCCs, strengthening India’s position as a global business hub. Given India’s rising economic influence, this move is expected to fuel office space demand in major metros like Bengaluru, Mumbai, Hyderabad, Pune, and Chennai, as well as Tier-II and Tier-III cities.
Rs 1.5 trillion fiscal support for MSMEs: The allocation of Rs 1.5 trillion to MSMEs is expected to spur capacity expansion, creating a ripple effect that will positively impact industrial real estate.

Speaking on the Budget 2025 and its impact on the real estate, Anuj Puri, Chairman, ANAROCK Group, said, “The Union Budget focused on economic expansion, infrastructure development, MSMEs, futuristic cities, and middle-class welfare and brings substantial relief for the middle class. It also aims to stimulate rural consumption - an essential step toward unlocking India’s economic potential. From a real estate perspective, the budget delivers both direct and indirect benefits, acting as a catalyst for growth. However, a notable shortfall was the absence of major announcements for the affordable housing sector, leaving stakeholders disappointed.”
 
He added, “Despite this, the budget overall remains strong and growth-oriented, with a clear focus on economic development and enhanced consumption.”

Key takeaways for the real estate sector include:• Income tax relief for the middle class: The finance minister announced zero income tax for individuals earning up to Rs 12 lakh annually, providing a major consumption boost. This move is also expected to strengthen demand for affordable housing. Additionally, the new income tax bill will retain nearly 50 per cent of existing provisions while introducing personal tax reforms and rationalising TDS and TCS regimes by streamlining rates and thresholds.• Tax benefits for residential property investors: Investors can now claim nil valuation for two self-occupied properties, instead of just one - a positive move for residential real estate investment. The simplified TDS on rent decreases the compliance burden and enhances liquidity for landlords and will positively impact the rental housing market, especially in metro cities. Previously, homeowners could claim only one self-occupied property as tax-free; now, they can claim two - thereby removing taxation on notional rental income from a second home. This step minimises tax pressures, promotes homeownership, and facilitates real estate investment, especially in second homes and Tier 2 and 3 cities. Middle-class homebuyers, landlords, and investors can now benefit from reduced tax liabilities, better affordability, and less compliance hassles. By simplifying financial constraints and tax rules, the budget has made property ownership and rental housing more accessible. This gives a significant fillip to the real estate sector, specifically to and housing demand.• Rs 1 trillion urban challenge fund for new-age cities: The establishment of this massive urban development fund will enhance infrastructure, unlock real estate potential, and transform cities into major growth hubs.• SWAMIH fund allocation of Rs 150 billion: This initiative will facilitate the completion of over one lakh stalled residential units, providing much-needed relief to homebuyers, especially in the National Capital Region (NCR).• Revamped UDAAN scheme to improve connectivity: The restructured UDAAN scheme aims to connect 120 new destinations and serve over four crore passengers in the next decade. Greenfield airports in Bihar and other regions will be developed to support this expansion. This enhanced connectivity is expected to boost real estate demand in Tier-II and Tier-III cities.• PM Gati Shakti data access for private sector & tourism & warehousing infrastructure boost: The government will open PM Gati Shakti data to private players, while 50 top tourist destinations will be developed in collaboration with state governments. Additionally, hotels will be included in the harmonised scheme for tourism infrastructure, leading to enhanced real estate opportunities in major tourist hubs. This will also benefit the warehousing sector across the country.• Support for Global Capability Centres (GCCs): A national guidance framework will be introduced to help states attract and promote GCCs, strengthening India’s position as a global business hub. Given India’s rising economic influence, this move is expected to fuel office space demand in major metros like Bengaluru, Mumbai, Hyderabad, Pune, and Chennai, as well as Tier-II and Tier-III cities.• Rs 1.5 trillion fiscal support for MSMEs: The allocation of Rs 1.5 trillion to MSMEs is expected to spur capacity expansion, creating a ripple effect that will positively impact industrial real estate.Speaking on the Budget 2025 and its impact on the real estate, Anuj Puri, Chairman, ANAROCK Group, said, “The Union Budget focused on economic expansion, infrastructure development, MSMEs, futuristic cities, and middle-class welfare and brings substantial relief for the middle class. It also aims to stimulate rural consumption - an essential step toward unlocking India’s economic potential. From a real estate perspective, the budget delivers both direct and indirect benefits, acting as a catalyst for growth. However, a notable shortfall was the absence of major announcements for the affordable housing sector, leaving stakeholders disappointed.” He added, “Despite this, the budget overall remains strong and growth-oriented, with a clear focus on economic development and enhanced consumption.”

Next Story
Infrastructure Urban

India, Russia Hold 22nd Defence Commission Meet in New Delhi

Raksha Mantri Rajnath Singh and Russia’s Defence Minister Mr Andrei Belousov co-chaired the 22nd India–Russia Inter-Governmental Commission on Military and Military Technical Cooperation (IRIGC-M&MTC) at the Manekshaw Centre in New Delhi on 4 December 2025. Both sides reaffirmed that the longstanding bilateral relationship is anchored in mutual trust, shared principles and deep respect. The meeting comes ahead of the 23rd India–Russia Annual Summit between Prime Minister Narendra Modi and President Vladimir Putin.During the session, Rajnath Singh reiterated India’s commitment t..

Next Story
Infrastructure Urban

ITU–TRAI Workshop on QoS and QoE Begins in Bhubaneswar

The Telecom Regulatory Authority of India (TRAI), in collaboration with the International Telecommunication Union (ITU), inaugurated the ITU–TRAI Workshop on Performance, Quality of Service and Quality of Experience in Bhubaneswar. The two-day international programme convened National Regulatory Authorities (NRAs), service providers and technical specialists from around the world to strengthen collaborative approaches to telecom service-quality frameworks. The inaugural ceremony featured a lamp-lighting, followed by a welcome address from Atul Kumar Chaudhary, Secretary, TRAI, and the inaugu..

Next Story
Infrastructure Urban

CEC Gyanesh Kumar Addresses UI, Assumes IDEA Council Chairship

Chief Election Commissioner of India, Shri Gyanesh Kumar, delivered an address at the Swedish Institute of International Affairs (UI) in Stockholm, where he participated in a round-table discussion titled ‘Inside India’s Democracy’. Former Swedish Foreign Minister Ms Ann Linde joined him as a co-speaker during the session. The engagement formed part of his official visit to Sweden, which concludes later today. Shri Gyanesh Kumar assumed the Chairship of the Council of Member States of the International Institute for Democracy and Electoral Assistance (International IDEA) for the year 20..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App