by Shubh Nivesh 
The Union Budget 2025 has brought a wave of positive developments for the Indian real estate sector. With a focus on increasing disposable income, supporting stalled projects, and providing tax relief, the budget is expected to drive significant growth in the housing and rental markets. Let’s explore the key takeaways and their impact on real estate investors, homebuyers, and developers.
- Higher Disposable Income Boosts Home Buying
One of the most crucial changes in Budget 2025 is the increase in the income tax exemption limit from ₹8 lakh to ₹12 lakh. This move leaves more money in the hands of salaried individuals and the middle class, making it easier for them to invest in real estate.
With higher take-home income, homebuyers—especially first-time buyers—are more likely to consider purchasing properties. This is expected to drive demand in both affordable and mid-income housing segments, benefiting developers and real estate investors.
- Relief for Homeowners: Tax Benefits on Multiple Properties
Another significant change is the modification in tax rules for self-occupied properties. Previously, homeowners were allowed to claim nil annual value on only one self-occupied property. Now, they can claim this benefit for two properties, reducing their overall tax burden.
This change is particularly beneficial for investors and second-home buyers, as they can now hold additional properties without facing higher tax liabilities. It also encourages people to invest in vacation homes, rental properties, and real estate as an asset class.
- Support for Stalled Projects Through SWAMIH Fund 2
One of the biggest challenges in Indian real estate has been stalled housing projects, leaving thousands of homebuyers waiting for possession. To address this, the government has announced ₹15,000 crore for SWAMIH Fund 2, which aims to complete an additional 1 lakh housing units in delayed projects.
This move will:
- Increase housing supply in the market.
- Build trust among homebuyers and investors.
- Boost liquidity in the real estate sector.
This is great news for buyers who have been stuck in incomplete projects and for developers who need funding to complete construction.
- Higher TDS Threshold on Rent – A Boost for the Rental Market
For property owners who earn rental income, the budget has increased the TDS (Tax Deducted at Source) threshold on rent from ₹2.4 lakh to ₹6 lakh annually. This means that landlords earning rental income up to ₹6 lakh per year will not have tax deducted at source, making property rentals more attractive.
This change is expected to:
- Encourage more individuals to invest in rental properties.
- Boost the demand for residential and commercial leasing.
- Support the growth of co-living and rental housing projects.
With rising urbanization and the increasing demand for rental accommodation, this is a major boost to the real estate sector.
- Market Reaction: A Strong Vote of Confidence
Following the budget announcements, the Nifty Realty Index surged by 3.3%, reflecting strong investor confidence in the sector. Top real estate companies like Prestige Estates, DLF, and Sobha witnessed significant gains in their stock prices.
Industry experts believe that the combination of higher disposable income, tax relief, and government support for the housing sector will lead to a surge in property transactions, both in residential and commercial segments.
Conclusion: A Promising Future for Real Estate in 2025
Budget 2025 has provided a strong foundation for growth in the real estate sector by addressing key concerns of homebuyers, investors, and developers. The focus on tax relief, rental market support, and completion of stalled projects will lead to higher demand, increased affordability, and greater investment opportunities.
For those looking to invest in real estate, this is the right time to explore opportunities in emerging areas and growing markets like Jaipur. With rising demand and supportive policies, real estate remains one of the most lucrative asset classes for long-term wealth creation.
If you’re looking to invest in prime locations with high returns and rental income potential, Shubh Nivesh Group is here to guide you. Explore our premium property options and secure your future with a trusted real estate partner.
