Credai Urges Tax Breaks for Homebuyers, Affordable Housing Incentives

New Delhi, Jul 20 (PTI) Realtors' body Credai on Saturday urged the government to provide more tax benefits to homebuyers, offer incentives to builders to develop low-cost homes and streamline the approval process to undertake real estate projects in the upcoming Budget.

Credai, in a statement, said it has given various recommendations to the government for further growth of the real estate sector.

These recommendations emphasise the importance of measures like streamlined approval processes and subsidies for developers investing in affordable housing projects, the association said.

"With its significant contribution to the GDP, employment generation and infrastructure development, the Indian Real Estate sector looks forward to a supportive budget that addresses certain long-standing challenges and sets the platform for sustainable and sustained growth.

"Our recommendations are aimed at sustaining demand through a slew of measures, including increasing in interest exemption for home buyers, reintroduction of CLSS (credit linked subsidy scheme), and steps required to boost Affordable housing," Credai President Boman Irani said.

To stimulate homebuying, Credai said the finance ministry should consider allowing unlimited interest deductions for the first self-occupied property or increasing the deduction limit to Rs 5 lakh from Rs 2 lakh currently.

Domnic Romell, President of CREDAI-MCHI, said the real estate sector is hopeful for measures to boost the sentiment.

He demanded that the government should finally grant industry status to the sector and take effective steps to rejuvenate the affordable housing segment, which has been struggling since the pandemic.

"Many incentives for buyers and developers of affordable housing have lapsed in the last two years, exacerbating the issue," he pointed out.

High-impact measures like tax breaks are needed to revitalise this crucial segment, Romell said.

PropEquity founder and CEO Samir Jasuja stressed the need for a single-window clearance system to ensure timely approvals for real estate projects.

Ramesh Menon, founder and Director of Delhi Consortium, said it is crucial for the real estate sector to be granted 'industry status' in the budget 2024.

The government should take proactive measures to boost demand, rationalise costs, and minimise regulatory bottlenecks, he added.

Gaurs Group CMD Manoj Gaur, "The real estate has pinned high hopes on the forthcoming budget. First of all, the sector is looking for the reintroduction of the interest subvention scheme to revive mass housing".

Secondly, we are also seeking a redefinition of affordable housing. The present limit should be increased from 90 square metres and Rs 45 lakhs in terms of space and pricing, respectively.

Sandeep Chhillar founder and Chairman of Landmark Group said, "The real estate sector expects the government to look into its long pending demands of industry status and single window clearance".

Vivek Singhal, CEO of Smartworld Developers, emphasised having single-window clearance for real estate projects.