Union Budget 2025-26: Benefits to the Real Estate Sector

Honourable FM Of India Nirmala Sitharaman has announced the Union Budget 2025-26, under this budget she introduced several benefits for real estate sector too, however not so major but still commendable. 

The 2025 budget includes several key initiatives that directly impact the real estate sector:

Urban Challenge Fund: The government has announced the establishment of a Rs 1 lakh crore Urban Challenge Fund. This fund will focus on transforming cities into growth hubs, supporting creative redevelopment, and enhancing water and sanitation infrastructure. A significant portion of the funding (Rs 10,000 crore) is allocated for 2025-26.

SWAMIH Fund 2: Building on the success of the first Special Window for Affordable and Mid-Income Housing (SWAMIH), a second fund will be created. SWAMIH Fund 2, with a corpus of Rs 15,000 crore, will aim for the expeditious completion of 1 lakh housing units in stressed housing projects, benefiting middle-class homebuyers facing challenges with EMIs and rent.

Infrastructure & Housing Initiatives: The budget also outlines steps to enhance infrastructure, particularly in cities, with focus on both greenfield and brownfield projects. The aim is to develop affordable and mid-income housing, as well as public-private partnerships (PPPs) in urban development.

Tax Relief and Income Tax Reforms: While not specific to real estate, the introduction of a new tax regime and tax relief measures will benefit homebuyers and real estate professionals. For example, income tax benefits for people earning up to Rs 12 lakh under the new regime will make homeownership more affordable.

These measures are designed to boost housing availability, streamline infrastructure projects, and improve the financial health of individuals and businesses in the real estate sector.