Boosting Affordable Housing: Credai Urges Tax Breaks and Incentives for Homebuyers
Credai recommends tax benefits for homebuyers, incentives for affordable housing, and streamlined approvals in the upcoming budget to stimulate the real estate market.
Affordable HousingReal EstateTax BreaksHomebuyersBudget 2024Real Estate NewsJul 20, 2024
Credai has emphasized the need for measures to sustain demand, including increasing interest exemption for home buyers, reintroducing the credit linked subsidy scheme, and steps to boost affordable housing. To stimulate homebuying, Credai has recommended that the finance ministry consider allowing unlimited interest deductions for the first self-occupied property or increasing the deduction limit to Rs 5 lakh from Rs 2 lakh currently.
Industry experts believe that high-impact measures like tax breaks are needed to revitalise the affordable housing segment, which has been struggling since the pandemic. A single-window clearance system is also essential to ensure timely approvals for real estate projects. The government should take proactive measures to boost demand, rationalise costs, and minimise regulatory bottlenecks.
Credai has also demanded that the government grant industry status to the sector and take effective steps to rejuvenate the affordable housing segment.
Frequently Asked Questions
What is Credai's primary demand from the government in the upcoming budget?
Credai is urging the government to provide tax breaks for homebuyers, offer incentives to builders to develop affordable housing, and streamline the approval process for real estate projects.
What is the current deduction limit for interest on home loans, and what does Credai recommend?
The current deduction limit is Rs 2 lakh, and Credai recommends increasing it to Rs 5 lakh or allowing unlimited interest deductions for the first self-occupied property.
Why is a single-window clearance system essential for the real estate sector?
A single-window clearance system is necessary to ensure timely approvals for real estate projects and minimize regulatory bottlenecks.
What is the current status of the affordable housing segment in India?
The affordable housing segment has been struggling since the pandemic, and many incentives for buyers and developers have lapsed in the last two years.
What is the significance of granting industry status to the real estate sector?
Granting industry status to the real estate sector will help it access funding at a lower cost, improve its credibility, and enable it to contribute more significantly to the country's GDP.
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