#SWAMIHFund2

[realestateradar]

Budget 2025 Boosts Real Estate Stocks: Key Announcements Impacting Sector

Shares of major real estate players such as DLF, Sobha Ltd, Oberoi Realty, Prestige Estates, Phoenix Mills, and Macrotech Developers saw significant gains on February 1, 2025, following Finance Minister Nirmala Sitharaman's announcement of several measures aimed at stimulating the real estate sector. Some stocks jumped by as much as 9%, reflecting positive investor sentiment in response to the budget proposals.

For instance, Prestige Estates' shares closed 5.03% higher at Rs 1,431.50, while DLF saw a 2.10% increase, closing at Rs 760.75. As a result, DLF's market capitalization surged to Rs 1.88 lakh crore, highlighting investor optimism.

Here’s a breakdown of the key budget announcements that are expected to have a lasting impact on the real estate market:

SWAMIH Fund 2 The establishment of a Rs 15,000 crore SWAMIH Fund 2 is designed to accelerate the completion of one lakh affordable and mid-income housing units. This initiative, a collaboration between the Government of India, banks, and private investors, is expected to increase the supply of housing and boost market confidence.

Tax Benefits for Self-Occupied Properties The budget introduced a provision allowing taxpayers to claim the annual value of two self-occupied properties as Nil for tax purposes, up from just one property previously. This measure is expected to benefit individuals with multiple properties.

Increased TDS Limit on Rent The limit for Tax Deducted at Source (TDS) on rent has been raised from Rs 2.4 lakh to Rs 6 lakh, benefiting small taxpayers who earn rental income. This move is seen as a positive for landlords and tenants alike.

Smart City Mission Funding Boost The allocation for the AMRUT and Smart Cities Mission has been increased by 25%, from Rs 8,000 crore to Rs 10,000 crore. This funding increase is likely to have a ripple effect on construction and building material demand.

The budget measures also include the announcement that individuals under the new tax regime won’t have to pay income tax on income up to Rs 12 lakh, which is expected to boost disposable income and consumer spending. A portion of these savings may flow into the real estate sector, further supporting market growth.

The positive reaction was evident in the market as shares of Oberoi Realty rose by 1.83%, closing at Rs 1,845.65, and Phoenix Mills surged 7.27%, reaching Rs 1,761.55. Other developers like Sobha Ltd and Macrotech Developers also saw stock price increases.

In the broader market, the BSE Realty Index gained 3.69% or 264 points, closing at 7,414, reflecting overall optimism in the sector. Although the index has experienced a 10.74% rise since the Interim Budget in February 2024, it has still faced a decline of 11% since the Union Budget of 2024 was presented.

As these measures unfold, the real estate sector appears poised for sustained growth, with potential positive implications for developers, investors, and the housing market in general.