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Realtors apex body CREDAI has urged the government to announce a National Rental Housing Mission in the upcoming Union Budget, proposing fiscal incentives for developers and tax relief for tenants to formalise and scale India's rental housing market. Citing rapid urbanisation and rising migrant inflows, the association said organised rental housing remains significantly underdeveloped, particularly in tier-I and tier-II cities. CREDAI has also reiterated its long-standing demand to revise the definition of affordable housing, including an upward revision of area norms and removal of the INR 45 lakh price cap, which it said no longer reflects market realities. Additionally, the body has sought an increase in the home loan interest deduction limit to INR 5 lakh from the current INR 2 lakh to support homebuyers.
The Confederation of Real Estate Developers Associations of India (CREDAI) has called on the Centre to introduce a National Rental Housing Mission in the forthcoming Union Budget, aimed at expanding organised rental housing supply across urban India. In its budget representation, the apex realtors body said the initiative should focus on creating large-scale affordable rental stock in tier-I and tier-II cities through fiscal incentives for developers, tax benefits for tenants and greater institutional participation. Advertisement
CREDAI pointed out that rapid urbanisation and sustained migrant inflows have sharply increased demand for rental housing, while the organised segment has failed to keep pace. The proposed mission, the association said, would help formalise the rental market, reduce the growth of informal settlements and improve workforce mobility, while also providing long-term investment opportunities in rental housing.
Alongside rental housing reforms, CREDAI has renewed its demand for a revision in the definition of affordable housing. The association noted that the current parameters, unchanged since 2017, limit carpet area to 60 square metres in metros and 90 square metres in non-metros, with a value cap of INR 45 lakh. According to CREDAI, these thresholds are no longer aligned with escalating land prices and construction costs. It has proposed revising carpet area norms to 90 square metres in metros and 120 square metres in non-metros, while removing the price ceiling altogether. Affordable housing currently attracts a concessional GST rate of 1 per cent.
The realtors body has also sought enhanced tax relief for homebuyers, recommending that the deduction on interest paid on home loans be increased to INR 5 lakh from the existing INR 2 lakh. CREDAI President Shekhar Patel said housing continues to be a critical driver of economic growth, employment generation and urban development, and strengthening affordability and access to finance is essential to sustain momentum.
Other industry stakeholders echoed similar expectations from the Budget. Gaurs Group CMD Manoj Gaur reiterated the demand for industry status for real estate to enable easier access to institutional finance. Sattva Group's Shivam Agarwal called for single-window clearances for Global Capability Centres, citing their role in driving office demand, while Krisumi Corporation Chairman Ashok Kapur sought policy support and tax incentives for green and sustainable buildings.
Source- PTI
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