The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, has introduced a series of measures aimed at strengthening the real estate, housing, and infrastructure sectors. Jitendra Mehta, President of CREDAI-MCHI Thane, described the budget as "growth-oriented," with a strong focus on infrastructure development and relief for the middle-class.

The government has significantly increased funding for the affordable housing segment to promote inclusivity and sustainable urban development. A key measure is the enhancement of the tax deduction limit on home loan interest payments from ₹2 lakh to ₹5 lakh, a move expected to make homeownership more affordable and stimulate demand.

Additionally, regulatory reforms under the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST) continue to improve transparency and accountability in the sector. As of January 6, 2025, approximately 1.38 lakh real estate projects and 95,987 real estate agents have been registered under RERA, with 1.38 lakh complaints resolved.

The government remains committed to the National Infrastructure Pipeline (NIP), investing in roadways, highways, and urban infrastructure to enhance connectivity and economic growth. Sustainable urban development policies, particularly in energy and transportation, are set to improve quality of life while also driving the real estate sector and job creation.

Key Announcements for the Real Estate Sector:

1. TDS Limit on Rent Increased – The threshold for tax deduction at source (TDS) on rent has been raised to ₹6 lakh per year, improving liquidity for property owners.

2. Updated Return Window Extended – Taxpayers now have four years instead of two to file updated returns, offering greater flexibility.

3. Eased Regulations for Self-Occupied Property – New relaxations have been introduced for self-occupied properties.

4. Income Tax Relief for the Middle Class – The income tax exemption limit has been increased to ₹12 lakh, providing financial relief and boosting consumer spending.

Mehta emphasized that these provisions would stimulate investment in real estate, drive home sales, and support economic expansion. "With increased allocations for infrastructure and tax benefits for the middle class, this budget lays a solid foundation for sustained economic growth," he stated.