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Kolkata's real estate developers are urging the government to leverage the upcoming Union Budget to recalibrate housing policies amid rising construction and land costs. Key proposals include revising the affordable housing definition, adjusting GST on under-construction properties, enhancing tax benefits for homebuyers, and streamlining approvals. Industry leaders highlighted the importance of supporting mid-income housing, integrated townships, and rental projects. They believe that consistent policy support and urban infrastructure investment could revive demand, accelerate project execution, and attract long-term capital, fostering sustainable growth in eastern India's property market.
Real estate developers in Kolkata have requested the Centre to use the upcoming Union Budget to update housing policies, reflecting rising land and construction costs. They emphasized the need for higher tax benefits for homebuyers and a revision of the long-standing definition of affordable housing. Advertisement
Industry experts highlighted that revisiting price caps for affordable homes, rationalising GST on under-construction properties, and simplifying approval processes could significantly drive demand, particularly in the mid-income segment.
Sushil Mohta, president of CREDAI West Bengal and chairman of Merlin Group, explained that reforms should match current market conditions. He noted that redefining affordable housing, adjusting housing loan interest deductions, and streamlining GST rates could make homes more accessible, especially for middle-income buyers. He also emphasized policy support for rental housing and broader access to formal housing finance amid rapid urbanisation.
Mahesh Agarwal, managing director of Purti Realty, stressed that continuous policy support through tax rationalisation and infrastructure spending remains essential. He pointed out that re-evaluating affordable housing price limits and adjusting GST on under-construction properties would enhance affordability. Simplified tax structures and incentives for first-time buyers, he added, could stabilise the market and speed up project execution.
Saket Mohta, MD of Merlin Group, underlined that construction costs have risen sharply since GST was introduced in 2017, making further rationalisation necessary. He proposed increasing the affordable housing price cap from INR 45 lakh to around INR 80-90 lakh and expanding unit size norms. He added that mid-income housing will be a key demand driver in 2026, making supportive tax and policy measures vital for growth.
Arya Sumant, MD of Eden Realty, highlighted the need to balance fiscal discipline with growth-focused reforms. According to him, higher home loan interest deductions for mid-income and first-time buyers, an updated definition of affordable housing, GST rationalisation, and faster approvals could improve project viability and reduce time-to-market. He also noted that consistent investment in urban infrastructure would boost demand across residential and commercial segments.
Sahil Saharia, CEO of Bengal Shristi Infrastructure Development Ltd, emphasized the shift towards large, integrated developments. He said policy backing for mixed-use townships, rental housing, and commercial hubs, along with faster approvals and digital single-window systems, could create self-sustained urban ecosystems and improve project execution efficiency.
Developers believe that clear and stable policies in the Budget could not only restore homebuyer confidence but also attract long-term capital, ensuring sustainable growth of the real estate sector in eastern India.
Source PTI
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