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Envisioning the Future: Union Budget 2025 & Impact on Real Estate
Recently, our finance minister unveiled the Union Budget 2025, which has several initiatives that may have a favorable effect on India’s residential real estate market. The following is a comprehensive outlook of Ahmedabad’s potential real estate situation’s outcomes:
Increased Disposable Income for Homebuyers
- The zero-tax slab has been raised to ₹12 lakh annually, saving middle-class taxpayers up to ₹1 lakh crore collectively. This boosts disposable income, enabling more households to afford home purchases, particularly in the mid-segment (₹45–65 lakh price range).
- Increased affordability could drive demand in suburban areas like Vaishnodevi, Gota, Zundal, etc, where affordable and mid-income housing is concentrated.
Tax Benefits for Second Homes
- Homeowners can now claim tax exemptions for two self-occupied properties (previously limited to one). This eliminates tax on notional rental income from a second home, incentivizing investment in vacation homes or rental properties.
- Luxury projects in prime locations like SG Highway, Satellite, and Bopal may see higher demand, as buyers can now offset tax burdens on second homes.
SWAMIH Fund 2.0 to Revive Stalled Projects
- The government has allocated ₹15,000 crore to SWAMIH Fund 2.0, aiming to complete 1 lakh stalled housing units nationwide. This addresses supply-side bottlenecks and restores buyer confidence.
- Projects stalled due to funding issues could be revived, particularly in areas like Shela, Thaltej, and Sanand, where integrated townships are popular.
Urban Infrastructure Boost via ₹1 Lakh Crore Urban Challenge Fund
- The fund will prioritize urban connectivity, smart city initiatives, and sustainable development. Improved roads, metro expansion, and expressways will enhance accessibility to peripheral areas.
- Due to better connectivity, residential demand will increase in locations near the Ahmedabad Metro (e.g., Thaltej, Rabari Colony) and upcoming expressways (e.g., SG Highway extensions).
Emphasis on Affordable Housing
- The Pradhan Mantri Awas Yojana (PMAY-U 2.0) has been extended to support 1 crore additional households. Subsidies and low-cost financing will aid first-time buyers.
- Affordable housing projects in areas like Dholera, Gota, Vatva and Bopal will likely attract more buyers, supported by government incentives.
Proptech and Regulatory Reforms
- The budget highlights digitization of real estate transactions, reducing bureaucratic delays and improving transparency.
- Tech-driven developments (e.g., smart homes) are gaining traction, with projects integrating AI-driven analytics and IoT for energy efficiency.
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