Budget disappoints realty sector: CREDAI

Hyderabad: The Confederation of Real Estate Developers’ Associations of India (CREDAI) Hyderabad held that the Union budget falls short in recognising the real estate sector’s crucial role in economic growth and employment generation.

In a media statement it noted that the absence of specific tax incentives for real estate investment is disappointing. “Targeted measures, such as enhanced tax deductions on home loans and reduced GST on construction materials, would have significantly boosted sectoral growth,” stated the CREDAI.

It pointed out that the allocation of Rs 1 lakh crore for urban development is a step forward, but it remains insufficient to address the rising infrastructure demands of an urbanising India. The housing demand in India is projected to reach 93 million units by 2036, necessitating greater financial support and policy initiatives. The Rs 15,000 crore allocation under SWAMIH Fund- 2 for completing stalled housing projects is welcome, but it raises concerns about whether this funding is sufficient to tackle the current backlog, stated the Confederation.

However, it urged the government that the anticipated amendments to the Income Tax Act in the coming weeks must address these concerns to unlock the full potential of the sector. “We call upon policymakers to engage in meaningful dialogue with industry stakeholders to ensure the real estate sector receives the attention and support it truly deserves.

As the finance minister has informed us that the final Income Tax Bill will be shared next week, we keenly await its details and hope for favourable provisions that will drive a boom in the real estate sector,” it hoped.