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

The upcoming Budget 2024 is generating significant anticipation in the Indian real estate sector, especially among homebuyers and property developers. The Confederation of Real Estate Developers’ Associations of India (CREDAI), a prominent industry body, has called upon the Finance Minister to introduce tax reliefs that could transform the housing market. CREDAI emphasizes that strategic fiscal measures, such as increased tax deductions on home loan interest and principal repayment, will directly benefit aspiring homeowners. These incentives could also stimulate demand for residential properties in metropolitan and emerging cities across India, including Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune, and Chennai.

CREDAI’s representation highlights the pressing need for affordable housing incentives to ensure both accessibility and economic growth. By suggesting that the government revise the definition of affordable housing and raise the price cap, CREDAI aims to make more individuals eligible for government subsidies and tax benefits. This move is particularly crucial in rapidly urbanizing regions where property values are escalating, and first-time buyers need greater financial support.

For developers, CREDAI recommends targeted incentives such as extended tax holidays and GST reductions for affordable housing projects. These measures are expected to encourage builders to invest in budget-friendly developments, bridging the gap between supply and demand in Tier 1, Tier 2, and Tier 3 cities. Enhanced liquidity and streamlined approval processes could further accelerate project completions, benefiting not just builders but the broader economy by generating employment and boosting allied industries.

CREDAI’s proposals align with the government’s vision of “Housing for All” and sustainable urban growth. Prioritizing these reforms in Budget 2024 can empower millions of Indians to achieve homeownership while supporting real estate developers in delivering quality, affordable homes. Such policy changes are set to drive inclusive growth, elevate living standards, and strengthen the real estate sector’s contribution to the nation’s GDP. As the Budget approaches, industry stakeholders and citizens alike are hopeful that these recommendations will be reflected in the Finance Minister’s announcements, setting a new benchmark for housing accessibility and economic resilience in India.