Real Estate Recovery In Focus: Budget 2025’s SWAMIH Fund And Tax Reforms

A firm footing for India's real estate market is laid by Budget 2025-2026, which places a major emphasis on affordable housing and infrastructure-led growth. Housing, economic resilience, and tourism-led growth were given significant attention in the 2025-2026 budget. India's luxury real estate market is not just prospering but flourishing in the face of global economic upheaval because of tenacity, ambition, and growing investor demand. With a strong emphasis on urban development and support from the ₹10 lakh crore asset monetisation plan and ₹1 lakh crore Urban Challenge Fund, Budget 2025-2026 picks up speed.

Aman Gupta, Director, RPS Group, "SWAMIH has been expanding its focus from the completion of stressed housing projects by completing 50,000 dwelling units to a goal of completing 40,000 dwelling units by 2025. The government's increased focus on solving the middle-class urban housing dilemma is further evident from the establishment of SWAMIH Fund 2 with a blended approach, which aims to collect ₹15,000 crores. This is a great step towards completing pending projects and alleviating the pain for millions of families managing both EMIs and rent."

Accordingly Sandeep Mangla, Managing Director, Forteasia Realty Pvt. Ltd says, "Fund 2 of SWAMIH represents sophistication in the evolution of real estate financing systems. This allows for effective blended finance which involves contributions from the government, banking systems, and private organizations. All of this provides a solid foundation for completing the projects. The goal of completing additional units set at one lakh is very bold, but will greatly aid in the recovery and growth of the housing sector."

Deductions related to two self-occupied properties treated as taxable to the tune of zero is a remarkable shift captivating the nuances of real estate ownership within urban India. L.C. Mittal, Director, Motia Builders Group believes, "This policy will greatly benefit property owners whose personal and professional commitments span two or more metros, as it alleviates their tax liabilities while keeping pace with the realities of modern day living."

Zafeer Ahmed ,Managing Director, XRE Consultants says, "The achievement of 50,000 Dwelling units under SWAMIH demonstrates the scale of the problem and the intensity of the solution to these stressed real estate projects. The promise of completing 40,000 more units in 2025 indicates firm commitment to 'Do More' to solve the problems of the housing sector. This way of completing the projects is very important for restoring confidence in the real estate sector at large."

Anurag Goel, Director, Goel Ganga Developments explains, "Expanding existing projects and starting a new fund marks strategic planning when attempting to solve problems in the real estate industry. Mounting liquidity in the market alongside easing some pressure on homebuyers is bound to happen with the completion of 90,000 units by the year 2025. These changes in tax policy for those who occupy the properties reveal an emergent comprehension of the housing sector today."

The nuanced understanding of market dynamics is evident from the comprehensive approach taken on real estate sector reforms involving completion of projects under SWAMIH and changes to the tax policy. Saurabh Tyagi, Co-Founder and CEO of PropChk says, "After the successful delivery of 50,000 units and 40,000 in supply scheduled alongside tax incentives for owners of multiple properties, a sustainable sector growth becomes easier to obtain."

Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited says that, "Formally, allowing the occupation of two properties and maintaining a nil valuation will boost real estate tax policy modernization. This reform is socioeconomic in nature, providing investment incentives to property owners and making allowance for multi-city living. It will indeed increase supply to the housing market whilst enhancing geographical mobility of the owners."

Arya Gupta, Associate Director, Fusion Limited says, "Budget 2025 offers mixed signals for real estate. The increased TDS threshold on rent to ₹6 lakh is a positive, easing tax burden for landlords and tenants. Allowing 'nil' valuation for two self-occupied properties is another welcome move, potentially boosting second-home investments.

However, the budget lacked major announcements for affordable housing, a key concern."
Overall, the focus on urban development and infrastructure is positive, but we need to see how it translates into concrete action and if it addresses the affordability challenges in the sector.