The Union Budget for 2025 has allocated Rs 15,000 crore to the housing sector, with a focus on affordable housing, according to CREDAI Pune Metro President Ranjit Naiknavare. Here are some key highlights from the budget:
1. Strengthening the Rural Economy: Provisions targeting rural areas and MSMEs aim to foster economic growth and create jobs.
2. Reduction in Fiscal Deficit: The fiscal deficit target has been reduced from 4.8% to 4.4% to ensure long-term economic stability.
3. Capital Expenditure Surge: Capital expenditure has increased from ₹10 lakh crore to ₹12 lakh crore to stimulate infrastructure growth.
4. Ease of Doing Business: Measures such as expedited processing of company mergers aim to make business operations smoother.
5. FDI in Insurance: 100% FDI in the insurance sector is expected to bring in more foreign capital.
6. Urban Development: Nearly ₹1 lakh crore has been allocated to urban development projects to enhance infrastructure.
7. Focus on Housing Sector and Real Estate: The SWAMIH Fund II has been introduced to complete 1 lakh homes from stalled projects, benefiting homebuyers.
8. Income Tax Relief: The income tax exemption limit has been raised to ₹12 lakh, benefiting middle-class taxpayers.
9. Tax Changes for Rentals: Rental TDS cap has been increased to ₹6 lakh, and notional rent on second homes has been removed.
10. Anticipated Measures Missing: Expected reforms for affordable housing, GST reductions, and higher home loan interest exemptions were not included in the budget.
Overall, while the Budget 2025 has taken positive steps to support the housing sector and the economy, there are some missed opportunities for further reforms. The focus on infrastructure, urban development, and fiscal discipline is expected to have a lasting impact on real estate growth.
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