Union Budget 2025: Income tax relief and SWAMIH Fund II to drive housing demand, says PNB Housing Finance MD Girish Kousgi

The Union Budget 2025 has been praised for its focus on housing affordability and measures to strengthen the real estate sector. Girish Kousgi, MD & CEO of PNB Housing Finance, highlighted the budget’s growth-oriented policies and its commitment to resolving housing stress for millions of Indians.

“The Union Budget 2025 reflects the government’s steadfast commitment to strengthening the Indian economy through fiscal prudence and growth-oriented policies,” Kousgi stated. He emphasized that the housing sector remains a critical pillar of economic development, and the budget’s initiatives are poised to make homeownership more accessible.

A key highlight of the budget is the increase in the income tax exemption limit to ₹12 lakh, which Kousgi believes will have a direct impact on the housing market. “The increase in the income tax exemption limit to ₹12 lakh will significantly boost disposable income, enhancing purchasing power and potentially increasing housing demand,” he said. This rise in disposable income is expected to stimulate middle-class homeownership, further driving growth in the housing sector.

Kousgi also welcomed the government’s efforts to address stressed housing projects. “The completion of 50,000 dwelling units under stressed housing projects, with another 40,000 units set to be delivered in 2025, offers much-needed relief to middle-class families burdened by EMIs and rent,” he noted. These measures will provide crucial support to families caught in housing delays, easing financial stress and restoring confidence in the sector.

A major development in the budget is the introduction of SWAMIH Fund II, a ₹15,000 crore blended finance facility aimed at accelerating the completion of an additional one lakh housing units. “The establishment of SWAMIH Fund II will further accelerate the completion of another one lakh housing units, reinforcing the government’s focus on resolving housing stress,” Kousgi remarked. This initiative builds on the success of the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, providing critical funding to stalled housing projects.

Kousgi expressed optimism about the long-term outlook for the housing and real estate sectors. “We are optimistic that the sustained economic momentum, coupled with the government’s visionary policies, will drive long-term growth in the housing and real estate sectors, contributing to India’s vision of inclusive and sustainable development,” he concluded.

The Union Budget 2025’s combination of tax relief, housing project completions, and financial support through SWAMIH Fund II is set to revitalize the housing sector, offering a significant boost to homebuyers and contributing to India’s broader economic growth.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}