The Union Budget 2025-26 is set for a transformative leap in India’s real estate sector, focusing on affordable housing, infrastructure-led growth, and crucial tax reforms. With a strong push towards urban development, a robust asset monetization plan worth ₹10 lakh crore, and a ₹1 lakh crore Urban Challenge Fund, the government is reinforcing the foundation for a sustainable and resilient housing market. A significant highlight of the budget is the expansion of the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund.
Strengthening Affordable Housing with SWAMIH Fund 2
A significant highlight of the budget is the expansion of the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, which has already completed 50,000 dwelling units and now aims to deliver 40,000 more by 2025. The newly introduced SWAMIH Fund 2, with a target corpus of ₹15,000 crore, marks a strategic step in addressing the urban middle-class housing crisis.
This blended finance approach, involving contributions from the government, banking institutions, and private players, ensures that stalled projects receive the financial backing they need for completion. “This initiative is a bold move towards resolving the challenges faced by homebuyers stuck between EMIs and rent, providing much-needed relief,” experts in the sector affirm.
Tax Reforms: A Win for Homeowners
In a progressive shift for urban property ownership, the budget has also introduced a significant tax relief. This is treating two self-occupied properties as tax-free. This move is expected to benefit professionals and families with homes in multiple cities.
This reform acknowledges the realities of modern living. Here people often own homes in different metros due to professional and personal commitments. Removing the tax burden on such properties aligns with the evolving needs of homeowners.
Building Confidence and Liquidity in the Market
The expansion of existing projects and the launch of SWAMIH Fund 2 indicate a well-thought-out strategy to enhance liquidity and alleviate financial pressure on homebuyers.
Mr. Anurag Goel, Director of Goel Ganga Developments, notes, “With 90,000 housing units set for completion by 2025, we anticipate a substantial easing of liquidity constraints. Additionally, tax incentives for multiple property owners reflect a deep understanding of today’s housing market dynamics.”
The move has been widely welcomed as a step towards long-term stability in the sector. Successfully delivering 50,000 units, with another 40,000 in the pipeline. It also includes tax reliefs, fosters confidence in real estate investments and ensures steady sectoral growth.
Encouraging Investment and Multi-City Living
Allowing the occupation of two properties with a nil valuation is a game-changer. It modernizes real estate tax policy, encourages investment, and enables greater geographical mobility. This reform increases housing supply while supporting a dynamic, multi-city lifestyle.
A Balanced Approach for a Growing Market
The budget’s real estate measures reflect a balanced approach—providing relief to homeowners, supporting stalled projects, and modernizing tax policies. The increased TDS threshold on rental income to ₹6 lakh further lightens the tax burden for both landlords and tenants. These structural changes are expected to boost demand for second homes while fostering long-term stability in the sector.
While the luxury real estate market continues to thrive, these reforms ensure that growth. It is inclusive and extends across income segments. Budget 2025 positions India’s real estate sector for sustainable expansion in the coming years.
