CREDAI Proposes Major Policy Overhauls in Budget 2026 to Revive Housing Affordability
The Confederation of Real Estate Developers' Associations of India (CREDAI) has formally presented a set of comprehensive recommendations for the upcoming Union Budget 2026. These proposals aim to address critical challenges in the real estate sector, with a primary focus on making housing more affordable for the masses. The industry body emphasizes that targeted policy interventions are essential to stimulate demand and ensure sustainable growth in the housing market.
Key Recommendations for Tax and Regulatory Reforms
Among the foremost suggestions, CREDAI has advocated for significant tax reforms. The association is pushing for an increase in the deduction limit under Section 80C of the Income Tax Act for housing loan principal repayments. Currently capped, this enhancement is seen as a vital measure to boost homebuyer sentiment and incentivize property investments. Additionally, CREDAI has called for a reduction in Goods and Services Tax (GST) rates on under-construction residential projects. Lowering these rates could directly translate into more affordable housing options for potential buyers.
Enhancing Liquidity and Infrastructure Development
CREDAI's proposals also highlight the need for improved liquidity within the real estate sector. The body has recommended the establishment of a dedicated fund to support stalled projects, ensuring timely completion and delivery to homebuyers. Furthermore, there is a strong emphasis on accelerating infrastructure development, particularly in peripheral urban areas. Enhanced connectivity and amenities in these regions are crucial for unlocking new housing supply and making homes more accessible to a broader demographic.
Impact on the Real Estate Sector and Economic Growth
The implementation of these policy changes could have a profound impact on the real estate industry. By making housing more affordable, CREDAI believes that demand will surge, leading to increased construction activity and job creation. This, in turn, would contribute significantly to overall economic growth. The recommendations are timed ahead of Budget 2026, with the hope that the government will consider these measures to revive the housing market and support the broader economy.
In summary, CREDAI's submissions for Budget 2026 outline a strategic roadmap aimed at revitalizing housing affordability through targeted tax benefits, regulatory easing, and infrastructure enhancements. The real estate sector eagerly awaits the government's response, as these proposals could shape the future of housing in India.
