New Delhi, Feb 1 (PTI) – The apex bodies of realtors, CREDAI and NAREDCO, expressed high expectations from the Union Budget, particularly regarding an increase in the exemption on interest paid on home loans and incentives to enhance the affordable housing sector. Both associations welcomed the establishment of a ₹15,000 crore fund aimed at completing stalled housing projects.
CREDAI National President Boman Irani noted that the proposed income tax exemption for earnings up to ₹12 lakh, along with the increase in the TDS threshold on rent from ₹2.4 lakh to ₹6 lakh, would significantly boost disposable income, thereby stimulating housing demand and overall consumption. G Hari Babu, National President of NAREDCO, highlighted that the tax exemption for income up to ₹12 lakh under the new regime serves as a substantial incentive for the middle-income group, making homeownership more attainable and promoting investment in the housing sector.
However, both Irani and Hari Babu felt that the Budget could have offered more support for the real estate sector, particularly in the affordable housing segment. Irani stated, “This Budget fosters economic stability and positive market sentiment, yet the sector anticipated additional measures, such as further incentives to enhance demand for affordable housing and an increase in the home loan interest exemption threshold, which has remained unchanged for a considerable time.”
The industry also called for a revision of the definition of affordable housing, advocating for a minimum dwelling unit size rather than a uniform ₹45 lakh value nationwide. “These measures could have provided a significant boost to the market and improved housing affordability,” Irani added. He emphasized that the ₹15,000 crore SWAMIH Fund 2 is a vital initiative to expedite stalled housing projects, ensuring the interests of homebuyers are protected. Furthermore, allowing benefits for two self-occupied properties without conditions would further encourage homeownership.
Hari Babu commended the government’s initiative with SWAMIH Fund 2, which allocates an additional ₹15,000 crore for the completion of housing projects that have faced financial challenges. This initiative directly benefits middle-class families, many of whom are managing EMIs for home loans while also paying rent for alternative housing. “However, the Budget 2025 could have also tackled critical issues, especially in the affordable housing sector. Rising home loan interest rates and the outdated definition of affordable housing have created obstacles for many potential homeowners,” he remarked.
Samir Jasuja, Founder and CEO of PropEquity, described the SWAMIH Fund 2’s allocation of ₹15,000 crore as a modest yet positive step, considering the government’s goal to complete 1 lakh units. PropEquity reports that nearly 2,000 housing projects across 42 cities, comprising 5.08 lakh units, are currently stalled.
