– Domnic Romell, President, CREDAI-MCHIÂ
The Union Budget 2025 is a forward-looking blueprint that effectively touches upon key engines of development—agriculture, MSME, investment, and exports—ensuring sustained economic momentum. The government’s commitment to accelerating growth towards Viksit Bharat, securing inclusive development, and uplifting household sentiments is commendable.
The move to raise the annual TDS limit on rent from ₹2.40 lakh to ₹6 lakh will significantly benefit small taxpayers and landlords, easing compliance burdens. Additionally, the increase in the income tax exemption limit to ₹12 lakh under the new regime will enhance spending power, particularly among India’s rising middle class, and drive housing demand.
A particularly welcome move is the amendment allowing taxpayers to claim the annual value of two self-occupied properties as nil, exempting them from notional rental income tax. Previously, homeowners could claim tax exemption only on one self-occupied property, while additional properties were subject to tax, even if they were not rented out. This progressive reform provides significant tax relief, encourages homeownership, and acknowledges the evolving housing needs of Indian families.
For the real estate sector, especially in the Mumbai Metropolitan Region (MMR), the announcement of SWAMIH Fund 2 with an infusion of ₹15,000 crore is a welcome step, ensuring liquidity for stalled projects and expediting housing deliveries. The completion of 50,000 dwelling units under the existing SWAMIH scheme, with another 40,000 in the pipeline, highlights the government’s strong push towards resolving the housing crisis.
The budget’s increased funding for affordable housing, including the enhancement of the tax deduction limit on home loan interest payments from ₹2 lakh to ₹5 lakh, is a game-changer. This will significantly improve housing affordability and stimulate market demand, particularly in urban centers like MMR.
Regulatory reforms under RERA and GST have already brought much-needed transparency and efficiency to the sector, with 1.38 lakh real estate projects and nearly 96,000 agents registered under RERA as of January 2025.
Furthermore, the government’s continued commitment to infrastructure development under the National Infrastructure Pipeline (NIP) and enhanced urban infrastructure policies will provide a strong foundation for real estate growth. Investments in roads, highways, energy, and transportation will not only improve connectivity but also create jobs and fuel economic expansion.
We appreciate these growth-centric measures and look forward to further structural reforms, including the rationalization of GST and input tax credit for real estate, to unlock the sector’s full potential and drive urban transformation.