Budget ignored real estate industry, says CREDAI

The Confederation of Real Estate Developers’ Associations of India (CREDAI) Hyderabad states that the budget had failed to recognise the real estate sector’s vital role in growth and job creation.
The Economic Survey 2024-25 says that real estate, along with financial and professional services, contributed nearly 45% to the total services GVA in the first half of FY25. It remains one of India’s largest employment generators, supporting many industries. Despite this, the Finance Bill 2025 does not adequately address the sector’s pressing needs.
The President of CREDAI Hyderabad, Rajashekar Reddy, highlighted key concerns of the real estate industry.
He criticized the lack of tax incentives, saying higher home loan deductions and lower GST on materials could boost growth. The Rs 1 lakh crore urban development fund is helpful but inadequate to meet infrastructure needs. With housing demand expected to reach 93 million units by 2036, more financial support is required.
The Rs 15,000 crore SWAMIH Fund-2 is a step forward but may not fully address stalled projects. CREDAI calls for relaxed mortgage conditions and interest subvention schemes to improve homeownership.
While expanding the Gati Shakti portal is promising, its impact on approvals is uncertain. Incentives for cement and steel could drive economic growth. Removing notional rent on second properties is positive, but more rental and commercial property incentives are needed.
CREDAI Hyderabad urges the government to prioritize real estate reforms to help achieve India’s USD 4 trillion economic target. As amendments to the Income Tax Act are expected soon, it hopes these concerns will be addressed.
Meanwhile, Aparna Constructions Director Rakesh Reddy welcomed relief measures for mid-income and affordable home buyers but pointed out that key industry expectations remain unmet.
Rakesh said that granting industry status to real estate, streamlining approval processes, and enhancing liquidity support for developers could have accelerated growth. GST rationalization on under-construction properties, lower long-term capital gains tax, and higher tax benefits for homebuyers would have improved affordability and investment sentiment, he said.