Realtors’ apex body CREDAI has urged the government to launch a National Rental Housing Mission in the upcoming Union Budget, proposing tax incentives for developers and relief for tenants to address India’s growing urban housing needs.

In its pre-Budget wishlist, CREDAI highlighted that rapid urbanisation and large-scale migration to cities have exposed the lack of organised rental housing. It recommended creating large-scale affordable rental stock in Tier-1 and Tier-2 cities through fiscal incentives, institutional participation, and tenant-friendly tax benefits. Such a mission, CREDAI said, would help formalise the rental market, curb informal settlements, and support workforce mobility.

The association also reiterated its long-pending demand to revise the definition of affordable housing. It noted that the current norms, unchanged since 2017, cap unit sizes at 60 sq m in metros and 90 sq m in non-metros, along with a price ceiling of Rs 45 lakh. These limits, CREDAI argued, no longer reflect rising land and construction costs. It proposed increasing carpet area norms to 90 sq m in metros and 120 sq m in non-metros, while removing the value cap entirely.

Additionally, CREDAI demanded enhancement of the home loan interest deduction limit to Rs 5 lakh from the existing Rs 2 lakh.

CREDAI President Shekhar Patel said housing remains a key driver of economic growth, employment, and urban transformation, stressing the need to strengthen affordability and expand access to finance.

Industry leaders also sought industry status for real estate, single-window clearances for Global Capability Centres, incentives for green buildings, and demand-side support for homebuyers to boost sectoral growth.