Govt should launch National Mission on Rental Housing in Budget CREDAI

New Delhi, Jan 24 (PTI) Realtors' apex body CREDAI has demanded that the government launch a national mission for rental housing in the upcoming Budget, offering tax incentives to developers as well as tenants.
     In its Budget wishlist, CREDAI has reiterated its demand to revise the area norm and the Rs 45 lakh price cap in the definition of affordable housing.
     The association has demanded that the deduction on interest on home loans should be enhanced to Rs 5 lakh from Rs 2 lakh currently.
     "With rapid urbanisation driving migrant inflows, the organised rental housing segment remains underdeveloped," CREDAI said.
     The association recommended establishing a "National Rental Housing Mission to develop large-scale affordable rental stock in tier-1 and tier-2 cities through fiscal incentives for developers, tax relief for tenants, and institutional participation."
     This initiative will formalise the rental market, curb informal settlements, and support workforce mobility, it added.
     Shekhar Patel, President of CREDAI, said: "Housing remains a critical engine of economic growth, employment generation, and urban transformation.
     To keep pace with India's rapid urbanisation, it is vital to strengthen affordability, expand access to formal finance, and develop a robust rental housing ecosystem."
     CREDAI also emphasised the need to update affordable housing parameters for current market realities.
     "The current affordable housing definition, unchanged since 2017, restricts units to 60 square metres in metros and 90 square metres in non-metros, with a Rs 45 lakh value cap that no longer aligns with escalated land and construction costs," CREDAI said.
     CREDAI proposed revising carpet area norms to 90 square metres in metros, and 120 square metres in non-metros, while removing the value threshold entirely.
     The GST on affordable housing is one per cent.
     On Budget expectations, Gaurs Group CMD Manoj Gaur stressed the need to give industry status to the real estate sector, which contributes a lot to India's GDP and is the second largest employment generator.
     Shivam Agarwal, VP - Strategic Growth, Sattva Group, demanded that there should be a single window clearance for establishments of Global Capability Centres (GCCs) by foreign companies to accelerate investment.
     GCCs are major driver of office space demand in India, he added.
     Gurugram-based realty firm Krisumi Corporation Chairman Ashok Kapur sought tax sops and policy initiatives to promote green buildings.
     "With sustainability becoming an increasingly important policy priority, incentives for green and eco-friendly housing could help accelerate responsible development practices," Kapur said.
     Kirthi Chilukuri, Founder & Managing Director of Stonecraft Group, sought demand-side support for homebuyers to fuel growth in the housing segment.

(This story has not been edited by THE WEEK and is auto-generated from PTI)