Budget 2026: CREDAI pitches national rental housing mission; seeks tax relief, higher home loan deduction

Realtors’ apex body CREDAI has urged the government to launch a National Rental Housing Mission in the upcoming Union Budget, proposing fiscal incentives for developers and tax relief for tenants to boost the underdeveloped organised rental housing market.In its Budget wishlist, CREDAI said rapid urbanisation and rising migrant inflows have sharply increased demand for rental homes, but supply remains inadequate, PTI reported. It recommended a national mission to create large-scale affordable rental housing in tier-1 and tier-2 cities, backed by incentives for developers, institutional participation and tenant-level tax benefits. Such a move would help formalise the rental market, curb informal settlements and support workforce mobility, the body said.CREDAI also reiterated its long-pending demand to raise the deduction limit on interest paid on home loans to Rs 5 lakh from the current Rs 2 lakh, and to revise the definition of affordable housing, including the area norms and the Rs 45 lakh price cap.“Housing remains a critical engine of economic growth, employment generation and urban transformation. To keep pace with India’s rapid urbanisation, it is vital to strengthen affordability, expand access to formal finance, and develop a robust rental housing ecosystem,” Shekhar Patel, President of CREDAI, said.The association flagged that the current definition of affordable housing has not been updated since 2017 and no longer reflects market realities. At present, affordable homes are capped at 60 square metres carpet area in metros and 90 square metres in non-metros, with a maximum value of Rs 45 lakh, and attract 1% GST.“The existing thresholds do not align with sharply higher land and construction costs,” CREDAI said, proposing that carpet area limits be raised to 90 square metres in metros and 120 square metres in non-metros, while removing the value cap entirely.Other real estate executives also outlined Budget expectations. Manoj Gaur, CMD of Gaurs Group, called for industry status for real estate, citing its large contribution to GDP and its position as the country’s second-largest employment generator.Shivam Agarwal, VP – Strategic Growth at Sattva Group, sought single-window clearances for Global Capability Centres (GCCs) to accelerate foreign investment, noting that GCCs are a key driver of office space demand.Ashok Kapur, Chairman of Krisumi Corporation, urged tax incentives and policy support for green and sustainable buildings, while Kirthi Chilukuri, Founder and MD of Stonecraft Group, called for stronger demand-side support for homebuyers to revive housing growth.