The president of CREDAI, Coimbatore, Mr Gugan Ilango has broadly welcomed the budgetary provisions, as far as housing sector is concerned, as spelt out in the Union Budget presented by Union Finance Minister Ms Nirmala Sitharaman in Parliament on February 1,2025.

Nil tax for annual income up to Rs 12 lakh augurs well for the housing sector as it would put a higher disposable income in the hands of the prospective home buyers. As such it would give a thrust to the housing sector as demand is likely to surge, enabling the builders to take up new projects and dispose of whatever inventory in their hold.

Mr Ilango has also welcomed the budgetary proposal for removing tax liability for the owner-occupied second home. Ms Sitharaman in her budgetary speech stated that, “Presently tax-payers can claim the annual value of self-occupied properties as nil

However, Mr Ilango said that continuing to keep the cap on affordable housing at Rs 45 lakh per unit announced several years ago will act as a deterrent. Given the surging costs of land, building materials, wages, and rising inflationary trend, keeping the cap at this level of Rs 45 lakhs will greatly curtail the demand and keep the dream of an own home beyond the reach of the common man

Therefore, in the opinion of CREDAI as well as in the perspective of prospective home buyers, the cap for affordable housing can be justifiably raised to Rs 75 lakh per unit, Mr Ilango added.