Real Estate Sector Urges Higher Tax Benefits for Home Loans and Rental Housing
The real estate industry has called for increased attention to rental housing and higher tax benefits on home loans in a recent pre-Budget consultation with the finance minister.
Real EstateTax BenefitsRental HousingHome LoansAffordable HousingReal Estate MumbaiJan 06, 2025
This was discussed in a pre-Budget consultation with the finance minister on Monday.
Niranjan Hiranandani, the managing director of Hiranandani Group and chairman of the National Real Estate Development Council (NAREDCO), highlighted the importance of rental housing.
'Until now, we are only talking about ownership housing, but a focus needs to be given to rental housing as well,' Hiranandani said after the meeting.
In the previous Budget, Finance Minister Nirmala Sitharaman announced a plan to facilitate rental housing with dormitory-type accommodation for industrial workers through a public-private partnership (PPP) mode, with viability gap funding and commitment from anchor industries.
'So our idea is that we need to expand it to other people,' Hiranandani added, noting that even in the United States, 50% of the population lives in rental housing.
The pre-Budget consultation involved representatives from various sectors, including infrastructure, energy, and urban development, alongside senior government officials.
Discussions also centered on granting infrastructure status to the housing sector to ensure more funds are available for affordable housing projects.
Another key proposal was to increase the exemption limit on interest on housing loans from Rs 2 lakh to Rs 5 lakh, which would provide significant financial relief to homebuyers.
The meeting also touched upon the redevelopment of slums in Mumbai, a critical issue that requires immediate attention.
Alongside Hiranandani, prominent figures like B V N Rao, the business chairman of GMR Group, and S Paramasivan, the managing director of Afcons Infrastructure, were present.
From the energy sector, Sumant Sinha, chairman of ReNew Group, and Pawan Kumar Agarwal, CEO of Waree Energy, also participated.
The urban development group was represented by seven key individuals.
The real estate sector's plea for higher tax benefits and expanded rental housing initiatives aims to make housing more accessible and affordable for a broader segment of the population.
These proposals, if implemented, could significantly boost the housing market and improve living conditions across the country.
Frequently Asked Questions
What did the real estate sector request from the government in the pre-Budget consultation?
The real estate sector requested greater attention to the expansion of rental housing and higher tax benefits on home loans.
Who is Niranjan Hiranandani and what is his role?
Niranjan Hiranandani is the managing director of Hiranandani Group and the chairman of the National Real Estate Development Council (NAREDCO).
What was the key proposal made regarding tax benefits for home loans?
The key proposal was to increase the exemption limit on interest on housing loans from Rs 2 lakh to Rs 5 lakh.
What other sectors were represented in the pre-Budget consultation besides real estate?
Representatives from the infrastructure, energy, and urban development sectors were also present at the pre-Budget consultation.
What is the significance of providing infrastructure status to the housing sector?
Granting infrastructure status to the housing sector would ensure more funds are available for affordable housing projects, making them more viable and accessible.
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