Realty to build on tax breaks, wallet watch

Real estate developers are hoping that the slew of tax concessions announced in Union Budget 2025, set to take effect this financial year, will spur demand for affordable and mid-segment housing, even as the broader housing market shows signs of fatigue.

- GULVEEN AULAKH & SANKET KOUL

These hopes come against the backdrop of a looming global recession that could nudge consumers to prioritise savings or essential expenses such as education, according to senior industry executives and tax planners.

"When individuals have more disposable income due to lower taxes, that extra cash in hand can go towards down payments, support higher loan eligibility, or help manage equated monthly installments (EMIs) more easily. For many, this added financial leeway could be the final push to go ahead with a home purchase they've been putting off," said Sunil Dewali, co-chief executive officer of Andromeda Sales and Distribution, parent company of Andromeda Realty Advisors.

While individual choices will depend on personal financial planning and broader market sentiment, some in the industry believe the larger trends favour housing in 2025-26.