Budget 2024: Real Estate Sector's Expectations from the Finance Minister
CREDAI has submitted its wish list to the Finance Minister, seeking tax sops for homebuyers, incentives for builders, and a revamped approval process to boost the real estate sector.
Budget 2024Real EstateHousingCredaiHomebuyersBuildersAffordable HousingReal Estate NewsJul 20, 2024
CREDAI has recommended that the government should consider allowing unlimited interest deductions for the first self-occupied property or increasing the deduction limit to ₹5 lakh from ₹2 lakh for homebuyers. This move is expected to stimulate homebuying and boost real estate investments.
The industry body has also sought incentives for builders to construct affordable housing projects, along with a streamlined approval process. CREDAI has suggested that the government should revise the definition of affordable housing and provide definitive direct taxation and financial incentives. The existing threshold for affordable housing, set at ₹45 lakh since 2017, has remained unchanged despite a significant 24% increase in housing prices in India since June 2018.
To address the housing affordability crisis, CREDAI has recommended that the government should consider augmenting allocated funds for the Credit Link Subsidy Scheme (CLSS), streamlining application procedures, and intensifying awareness campaigns. The scheme currently benefits 25.04 lakh recipients with an interest subsidy exceeding ₹58,868 crore.
CREDAI has also sought collaborations with financial institutions to offer reduced interest rates, which could further encourage participation and ensure the scheme effectively addresses housing affordability and fosters economic growth.
Industry experts believe that a supportive budget that addresses the long-standing challenges of the real estate sector could help sustain demand and set the platform for sustainable and sustained growth. CREDAI remains committed to working closely with the government to create a conducive environment for the real estate sector and contribute to India's socio-economic goals.
Information
The Confederation of Real Estate Developers Associations of India (CREDAI) is the apex body of real estate developers in India. The organization has over 12,000 members across 23 states and 177 cities, representing the entire spectrum of the Indian real estate industry.
CREDAI is a non-profit organization that aims to promote the development of the real estate sector in India. The organization works closely with the government, financial institutions, and other stakeholders to create a conducive environment for the real estate sector.
Frequently Asked Questions
What is CREDAI's recommendation for homebuyers?
CREDAI has recommended that the government should consider allowing unlimited interest deductions for the first self-occupied property or increasing the deduction limit to ₹5 lakh from ₹2 lakh for homebuyers.
What is the current threshold for affordable housing in India?
The current threshold for affordable housing in India is set at ₹45 lakh since 2017.
What is the Credit Link Subsidy Scheme (CLSS)?
The Credit Link Subsidy Scheme (CLSS) is a government scheme that provides interest subsidy to homebuyers in the EWS, LIG, and MIG income categories.
What is CREDAI's expectation from Budget 2024?
CREDAI is expecting a supportive budget that addresses the long-standing challenges of the real estate sector and sets the platform for sustainable and sustained growth.
What is the importance of the real estate sector in India?
The real estate sector is a significant contributor to India's GDP, employment generation, and infrastructure development.
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