Real estate body Confederation of Real Estate Developers’ Associations of India (Credai) is disappointed that the Budget does not adequately address the needs of the industry.

C Shekar Reddy, National President Credai said the “Budget provisions do not give any impetus to the sector.”

The demand for infrastructure status to affordable housing, home loan interest rate subvention schemes to enhance affordability for housing and encourage demand have not been addressed.

These are critical to drive the affordable housing demand and supply to achieve ‘Housing for all by 2022’.

The Government has allocated ₹22,407 crore for Housing & Urban Development and announced plans to construct six crore houses in the urban and rural areas by 2022.

But it is not clear how these targets will be achieved.

Contrary to our demand for removal of service tax on affordable housing, the service tax has been increased to 14 per cent from 12.36 per cent adding to the cost of houses.

The Budget only refers to pass through of tax for investments in the Real Estate Investment Trusts (REITs) and rationalisation of the capital gains for the sponsors exiting at the time of listing of the units of REITs and InvITs.

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