Hyderabad: The income tax relief announced during the Union Budget 2025 is likely to boost housing demand in Hyderabad.
According to a report by the real estate services company ANAROCK, though a notable shortfall was the absence of major announcements for the affordable housing sector which left stakeholders disappointed, the budget overall remains strong and growth-oriented.
How income tax relief may boost housing demand in Hyderabad?
As per the report, income tax relief for the middle class provided by the announcement of zero income tax for individuals earning up to Rs 12 lakh annually is likely to provide a major consumption boost. This move is also expected to strengthen demand for affordable housing.
It also mentioned that investors can now claim nil valuation for two self-occupied properties instead of just one which is a positive move for residential real estate investment.
The SWAMIH Fund allocation of Rs 15,000 crore will facilitate the completion of over 1 lakh stalled residential units, providing much-needed relief to homebuyers, especially in the National Capital Region (NCR), the report added.
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These are some of the reasons behind the anticipated boost in demand for affordable housing in Hyderabad and other cities.
Exemption up to Rs 12 lakh
Union Finance Minister Nirmala Sitharaman on Saturday proposed an across-the-board change in tax slabs and rates to benefit all taxpayers, especially the middle class.
Approximately Rs 1 lakh crore will be made available in the hands of taxpayers by virtue of changes in slabs, rates, and rebates.
“There will be no income tax payable up to an income of Rs 12 lakh (average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs 12.75 lakh for salaried taxpayers due to the standard deduction of Rs 75,000,” announced FM Sitharaman, bringing cheer to more than 1 crore people.
It will substantially reduce the taxes of the middle class and leave more money in their hands.
The relief in income tax is likely to boost the demand for affordable housing in Hyderabad and other cities.
