Hyderabad: The Confederation of Real Estate Developers’ Associations of India (CREDAI) Hyderabad expressed disappointment with the Union Budget, stating that it underestimates the real estate sector’s importance in driving economic growth and creating jobs.
In a media statement, CREDAI highlighted the lack of specific tax benefits to encourage real estate investments. It suggested that steps like increasing tax deductions on home loans and reducing GST on construction materials could have significantly boosted the sector’s progress.
While the allocation of ₹1 lakh crore for urban development was acknowledged as a positive development, CREDAI deemed it inadequate to meet the growing infrastructure needs of a rapidly urbanising India. It pointed out that housing demand in the country is expected to reach 93 million units by 2036, requiring stronger financial backing and policy support. The ₹15,000 crore allocated under the SWAMIH Fund-2 for stalled housing projects was appreciated, but the association raised concerns about whether this amount would be sufficient to clear the existing backlog.
CREDAI urged the government to ensure that upcoming amendments to the Income Tax Act address these challenges to help the real estate sector reach its full potential. It called for discussions between policymakers and industry stakeholders to provide the necessary attention and support.
As the finance minister announced plans to release the final Income Tax Bill in the coming week, CREDAI expressed hope that the revised provisions would include favorable measures to stimulate growth in the real estate industry.
