NEW DELHI, Apr 2: A wave of optimism is sweeping through India’s real estate sector as the Income Tax Act 2025 comes into effect from April 1, with industry leaders confident that the new regime will put more money in buyers’ pockets and bring homeownership closer to reality for millions.
For years, aspiring homeowners – especially renters, first-time buyers, and Gen Z -have grappled with tight finances, high upfront costs, and cumbersome compliance processes. The latest tax overhaul, however, is being seen as a turning point that could ease these pressures and unlock pent-up demand.
Adhil Shetty, CEO and Co-Founder, BankBazaar, called the reform a “game-changer” for household finances, highlighting that the increased exemption threshold of Rs 12 lakh will boost take-home income and improve borrowers’ ability to manage EMIs.
“Better liquidity means greater flexibility and stronger credit behaviour. For young buyers, this could be the nudge they need to step into homeownership,” he said. At the same time, he cautioned that property prices and interest rates will continue to shape buying decisions.
The reforms are also expected to simplify transactions and attract a broader pool of investors, including NRIs. Ashish Narain Agarwal, Founder and Managing Director of PropertyPistol, pointed out that reduced TCS and streamlined PAN-based compliance will make cross-border property deals smoother and faster.
He added that tighter oversight of high-value transactions will further enhance transparency and trust in the sector.
From an investment perspective, Vishal Raheja, Founder and Managing Director of InvestoXpert Advisors, believes the new framework strikes the right balance. “Higher disposable income and clearer tax rules are likely to boost investor confidence. We could see real estate allocation rise by nearly 10% among urban investors,” he said. The sector is becoming increasingly attractive as a stable, long-term asset, Raheja added.
Meanwhile, the impact is expected to go beyond metro cities. Virender Kumar, VP-Marketing at Arete Group, said improved affordability and simplified compliance could drive demand in Tier 2 and Tier 3 markets.
“These regions offer the right mix of affordability and growth potential. Combined with infrastructure push, they are set to emerge as new real estate hotspots,” he noted.
Akshay Taneja, CEO of TDI Infrastructure, underscored that the biggest winners will be end-users, particularly in the mid-income segment. “Higher take-home income directly improves affordability. Add to that simpler processes and faster transactions, and you have a market where intent can quickly convert into actual purchases,” he said.
Taken together, the reforms are being hailed as a catalyst that could reshape the housing landscape – making it more transparent, efficient, and inclusive. While macroeconomic factors will continue to play their role, the new tax regime appears to have set the stage for stronger buyer sentiment and a renewed growth cycle in India’s real estate market.
(UNI)
Follow our WhatsApp channel
