Finance Bill 2025: CREDAI Hyderabad Calls for Greater Support to Real Estate Sector

Hyderabad: The Confederation of Real Estate Developers’ Associations of India (CREDAI) Hyderabad has acknowledged the presentation of the Finance Bill 2025 but expressed concerns over the lack of targeted provisions for the real estate sector. While the budget aims at fiscal stability, industry leaders believe it falls short in addressing the sector’s vital role in economic growth and employment generation.

The recently released Economic Survey 2024-25 highlights the real estate sector's significant contribution, accounting for nearly 45% of total services GVA in the first half of FY25, alongside financial and professional services. Additionally, real estate remains one of the largest employment generators in India, with deep linkages to ancillary industries. Despite these contributions, the Finance Bill 2025 does not fully address the pressing needs of the sector, according to CREDAI Hyderabad.

Key Industry Concerns:

1. Lack of Targeted Tax Incentives: The industry had hoped for enhanced tax deductions on home loans and a reduction in GST on construction materials to stimulate growth, but these measures were missing from the budget.

2. Insufficient Infrastructure and Housing Support: While the government has allocated ₹1 lakh crore for urban development, experts argue that this amount is inadequate to meet the rising infrastructure demands of a rapidly urbanizing nation.

3. Funding for Stalled Projects: The announcement of ₹15,000 crore under SWAMIH Fund-2 for completing stalled housing projects is a welcome move, but questions remain on whether this amount is sufficient to clear the backlog of unfinished projects.

4. Affordable Housing and Mortgage Reforms: The budget includes provisions for affordable housing, but CREDAI Hyderabad has called for interest subvention schemes and relaxed mortgage conditions to make homeownership more accessible.

5. Integration of Digital and Infrastructure Development: The expansion of the Gati Shakti portal for better urban planning is a positive step, but real estate developers await clarity on how it will help streamline project approvals and execution.

6. Investment in Ancillary Industries: The real estate sector directly impacts industries such as cement, steel, and construction technology. CREDAI has urged the government to introduce production-linked incentives (PLI) for these sectors, ensuring a ripple effect on economic growth.

7. Boost for Second Property Investments: The removal of notional rent on second properties is a step in the right direction, but industry leaders are calling for additional incentives to promote rental housing and commercial real estate investments.

Call for Meaningful Reforms

CREDAI Hyderabad has urged the government to take a proactive approach toward real estate sector reforms, recognizing its pivotal role in India's $4 trillion economic target. The anticipated amendments to the Income Tax Act in the coming weeks could provide much-needed relief to the industry, and stakeholders are keenly awaiting further details.

"As the voice of the real estate sector, we will continue advocating for progressive policies that fuel growth, generate employment, and contribute to national economic expansion," CREDAI Hyderabad stated.

With the Finance Minister set to present the final Income Tax Bill next week, the industry remains hopeful that favorable provisions will be included to drive a real estate boom in the coming years.