CREDAI Wishlist for Union Budget 2024-25 Give Affordable Housing a Boost

CREDAI Wishlist for Union Budget 2024-25 – Give Affordable Housing a BoostAffordable housing to get priority as CREDAI Wishlist for Union Budget 2024-25 demands that the government concentrate on the same in this sector. Stating that stimulating growth would come from solving many of the problems within the sector, CREDAI is calling for decisive action that will help bridge the gap to meet the needs of millions of Indians for houses.While affordability has seen a decline in the availability of housing in major cities from 26% of total launches in 2021 to 17% in 2024, according to industry reports, the shortage of affordable homes stands at over 10 million, estimated to rise to 31.2 million by 2030.

Based on these facts, CREDAI proposes a redefinition of affordable housing and an increase in price to keep up with the inflationary increase and cost of construction.The primary demand is that the affordable housing price cap be hiked to a decent level. Currently, the amount is Rs 45 lakhs, which the association raises to be too old, as housing prices have increased by more than 50% since 2017.

It therefore proposes the increase of the amount to Rs 70 lakhs for metro cities and Rs 90 lakhs for other cities. CREDAI also suggested delinking unit prices from carpet area criteria to make it easier for developers to focus on affordable projects.For the affordable housing schemes to be more popular, CREDAI advocates for a 15% income tax for affordable housing projects since the manufacturing sector already enjoys this. They also ask for the implementation of a Credit Guarantee Scheme so that the risk is minimized for lenders and the affordability for low and middle-income groups is increased.

Further, they demand a greater deduction of the interest on and principal of a home loan that is paid back. They have demanded a higher limit under Section 24(b) of the Income Tax Act for an interest deduction up to Rs 5 lakh from the present Rs 2 lakh, with these facilities available for new regime taxpayers, as well. Another proposal for their consideration has been a separate principal repayment of up to Rs 5 lakh.

According to CREDAI, real estate, in the views of its President Boman Irani, had been the spine for the growth OF the Indian economy. Conclusively this industry contributes most in the areas of employment GDP and Infrastructural facilities.He believes that these suggestions will help to overcome the long-pending issues in the housing sector, generate jobs, and support the vision of making the country an $8 trillion economy by 2029.

With such strong propositions, CREDAI hopes to reignite the affordable housing segment and add to India’s overall economic aspirations.