Budget 2024: CREDAI Urges FM for Tax Breaks for Homebuyers and Affordable Housing Incentives for Builders

India’s real estate sector is buzzing with anticipation as the 2024 Union Budget approaches. One of the most prominent voices in the industry, CREDAI (Confederation of Real Estate Developers’ Associations of India), has stepped up with a list of requests to the Finance Minister. Their focus? Tax breaks for homebuyers and new incentives for builders in the affordable housing segment. These demands, if considered, could make a big difference for anyone looking to invest in property or developers planning new affordable projects.

Let’s talk about why tax benefits for homebuyers are so important. For most families, buying a home is a huge financial decision. Tax deductions on home loan interest and principal repayments have always been an attractive factor. CREDAI is urging the government to increase the limits under Section 80C and Section 24(b) of the Income Tax Act. This would allow homebuyers to claim more benefits on their housing loans, making property ownership more achievable for the middle class. If you have been eyeing your dream home, higher tax deductions could mean more savings in your pocket.

Affordable housing continues to be a critical need across India’s growing cities. Despite government efforts, the demand for low-cost and mid-range homes far outpaces the supply. CREDAI has called for more robust incentives for builders engaged in affordable housing construction. These could take the form of tax holidays, lower GST rates, and faster approvals for new projects. The aim is to encourage more developers to enter this segment, ultimately increasing the supply of budget-friendly homes.

One of the biggest challenges for developers is the high cost of land and construction materials. CREDAI’s recommendation includes asking for a reduction in stamp duty and registration charges for both buyers and builders. This move could help reduce the overall property price, making real estate investment more attractive for first-time buyers. Imagine being able to save a substantial amount just by paying lower government fees when you purchase a new flat or house.

Another aspect that has caught everyone’s attention is the request for easier access to funding for real estate projects. Developers often struggle with expensive loans and limited financing options, especially when building affordable homes. CREDAI is pushing for policies that would allow easier financing, such as priority sector lending status for affordable housing projects. This could enable builders to secure loans at lower interest rates, ensuring faster completion of ongoing developments.

In the world of real estate, policy changes can have a ripple effect. From first-time homebuyers to seasoned investors, everyone is eager to see if the budget will include these much-needed reforms. Will we see higher tax exemptions for property buyers? Will builders get the incentives they need to boost affordable housing supply? As the budget date draws near, the answers could shape the future of India’s real estate market for years to come.