Tax Relief, Easier Regulations, And More Funds: How Budget 2025 Has Enhanced Affordable Housing

The 2025 budget has presented a series of measures that could significantly reshape the landscape of affordable housing, benefitting millions of middle-class families across the country.

The budget also brings a significant change in income tax slabs, which will directly impact the purchasing power of salaried middle-class families

Source : ABPLIVE AI

By Neeraj K Mishra

As we step into 2025, the national budget holds immense significance for various sectors of the economy, and perhaps none more so than real estate. Among the many challenges facing India, providing affordable housing for middle-class families remains one of the most pressing. The middle class has always been the backbone of India’s economic growth, and their dreams of owning a home form the foundation of the real estate industry. As someone deeply involved in this sector, I’ve witnessed firsthand the obstacles families face when it comes to accessing affordable housing. However, the 2025 budget has presented a series of measures that could significantly reshape the landscape of affordable housing, benefiting millions of middle-class families across the country.

The Current Housing Crisis for Middle-Class Families

The need for affordable housing has never been more urgent. With rapid urbanisation, property prices have soared, particularly in major cities. For many middle-class families, the dream of owning a home has remained just that— a dream. High property prices, coupled with limited affordable housing options, make it increasingly difficult for the average family to find a home within their budget.

In this context, the 2025 budget holds great promise. By introducing policies designed to ease financial barriers and promote affordable housing development, the government aims to bridge the gap between the demand for homes and their availability.

Key Measures Taken For Affordable Housing

One of the most significant announcements in the 2025 budget is the increased allocation for the Pradhan Mantri Awas Yojana (PMAY), which aims to provide affordable housing to all by 2022, with an extended focus into 2025. This initiative, already a game-changer for the affordable housing segment, will now benefit from an infusion of funds. The extended focus will ensure that more middle-class families can access homes under this scheme.

Additionally, the government has introduced incentives for private developers willing to engage in affordable housing projects. The budget streamlines the approval process for these developments, reducing red tape and accelerating project timelines. For developers, this is a welcome move that will allow us to bring more homes to the market faster and at a lower cost, directly benefitting homebuyers.

Tax Relief and Salary Slabs: A Boost to Homebuyers

The 2025 budget also brings a significant change in income tax slabs, which will directly impact the purchasing power of salaried middle-class families. The revised tax brackets offer higher exemptions, leaving more disposable income in the hands of taxpayers. This increase in disposable income means that families can save more for a down payment on a home or afford better loan terms.

In addition to this, the budget extends the home loan interest deduction under section 80EEA, which applies to first-time homebuyers. This reduction in taxable income helps lower the overall cost of buying a home, easing the financial burden on many middle-class families looking to invest in property.

Streamlining Regulations for Faster Delivery

Another key feature of the budget is the promise to simplify regulations surrounding land acquisition and construction approvals. For developers, the complexity and delays in securing approvals have always been a significant challenge. The 2025 budget aims to cut through this red tape by introducing a streamlined process for affordable housing projects. This not only ensures that developers can deliver homes more quickly but also brings down the cost of construction, making housing more affordable for buyers.

Furthermore, the government is focusing on the development of smart cities and affordable housing clusters on the outskirts of urban centers. These projects will be crucial in addressing the demand for affordable housing while reducing the pressure on city infrastructure. The availability of well-planned, self-sustained communities will provide the middle class with more options when looking for affordable homes.

Sustainability and Green Homes: Future-Ready Housing

The 2025 budget also emphasises the importance of sustainability in housing development. With climate change becoming a global concern, the budget encourages the construction of green homes—energy-efficient buildings that reduce both environmental impact and ongoing utility costs. For middle-class families, this could translate into long-term savings on electricity, water, and maintenance.

By offering incentives for eco-friendly homes, the government is ensuring that new housing projects are not only affordable but also sustainable in the long run. As the demand for energy-efficient buildings grows, families will benefit from lower costs of living, and the environment will also stand to gain.

Bright Future for Middle-Class Homeownership

In conclusion, the 2025 budget offers a comprehensive set of provisions designed to improve affordable housing for middle-class families. From increased funding for housing schemes like PMAY to tax incentives and regulatory reforms, the government is laying a strong foundation for a more inclusive housing market. The increase in tax slabs for salaried individuals further enhances purchasing power, allowing more middle-class families to consider homeownership as a feasible option.

The 2025 budget signals a clear commitment to addressing the affordable housing crisis, and with policies aligned with the needs of the middle class, homeownership is becoming more accessible. As developers, we’re excited to contribute to this vision, ensuring that affordable, sustainable homes are available to all who need them. The dream of owning a home is no longer a distant aspiration; with these changes, it is within reach for millions of families across India.

(The author is the Executive Director, Ganga Realty)

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