Amid predictions of rising property prices, leading figures within the real estate industry have voiced their discontent regarding perceived neglect by the finance minister. Lalit Kumar Jain, head of the Confederation of Real Estate Developers’ Association of India (CREDAI), articulated that the recent announcement concerning external commercial borrowings (ECB) aimed at affordable housing serves merely as a fleeting relief and lacks significant substance. Jain, who also presides as chairman and managing director of Kumar Urban Development Ltd, remarked, “We contribute 6.5% to the GDP and expected a big boost from the budget for affordable housing through special schemes, an interest subvention of 5-7% for LIG (low-income group) and EWS (economically weaker section) housing and the promotion of rental housing through tax exemptions.”
He further criticized the low interest subsidy provided for home loans. The Budget has prolonged the scheme of interest subvention by 1% on housing loans up to Rs 15 lakh, applicable to houses costing no more than Rs 25 lakh, for another year.
Gaurav Gupta, director of Omkar Realtors & Developers, expressed that the realty sector received no meaningful incentives to uplift market dynamics and enhance customer confidence. “There are no signs of this sector being recognized as an industry, which it rightfully deserves. Conversely, the rise in service tax is likely to inflate realty prices, as the extra costs will inevitably fall to the consumers.”
Brotin Banerjee, MD and CEO of Tata Housing, echoed similar sentiments, indicating that efforts to expand access to affordable housing for a broader demographic have remained inadequately addressed.
Conversely, Sachin Sandhir, MD of RICS South Asia, noted that some of the proposals were praiseworthy. He commented that the outcomes “exceeded expectations” considering the constraints imposed by the fiscal landscape.