Sunil Pareek, Executive Director, Assetz Property Group, Talks Real Estate Trends

The Union Budget 2025-26 proposes a positive and consumption boosting outlook, with commitments towards easing business operations and simplifying compliance. Initiatives like the new Income Tax Bill, streamlined TDS and TCS processes, rationalization of tariffs and a push for digital governance reflect a strong focus on fostering a business-friendly environment to boost global and domestic investors confidence. 

The increase in tax slabs, with NIL tax for incomes up to ₹12 lakh and the revised tax slabs, is a significant step in boosting disposable income and counter spending. Announcements around infrastructure funding, such as the ₹1 lakh crore Urban Challenger Fund and other development initiatives announced will enhance urban liveability but also create demand across the housing sector in long run. These measures will support real estate growth in the medium to long term through improved connectivity, affordability and job creation.

While some long-standing expectations, like increased tax incentives for homebuyers, remain unmet, the budget introduces some meaningful steps for the real estate sector. The launch of SWMHI Fund 2 is a critical move to address stressed projects, offering buyers greater confidence and providing liquidity to late stage projects. Additionally, allowing rental income relief for up to two self-occupied properties without attributing any notional rent will incentivize property investments and portfolio building. The increase in TDS limit for 6 lakhs for rental properties will also easy compliance burden especially now that rentals have gone up across the country. These measures along with putting more money in hands of people through direct tax relief will add their bit towards the resilient housing market.