Kolkata, Feb. 1 -- The real estate industry in West Bengal has welcomed the Central Budget's continued thrust on infrastructure but expressed strong disappointment over the absence of targeted measures for affordable housing.

The Confederation of Real Estate Developers' Associations of India (CREDAI) said sustained investments in highways, Metro rail, logistics corridors, railways and urban infrastructure would significantly boost connectivity, unlock new growth corridors and support long-term urban development, particularly in Tier II and Tier III cities. CREDAI West Bengal president and Merlin Group chairman Sushil Mohta said the Budget's emphasis on ease of doing business-through faster approvals, simplified procedures and digitisation-was a positive step that could reduce project timelines and holding costs, benefiting both developers and homebuyers.

However, the industry body expressed deep concern over the government's failure to address long-pending demands related to affordable housing. The existing price and area caps, which determine eligibility for benefits, remain unchanged despite sharp increases in land and construction costs. As a result, CREDAI warned that the affordable housing segment could shrink from nearly 18 per cent to around 12 per cent of total housing supply, severely affecting lower-middle-class and middle-income buyers.

"Affordable housing should be seen as economic infrastructure, not a welfare initiative," Mohta said, cautioning that a sustained decline in supply could push up rentals, increase commuting distances and encourage the growth of informal housing settlements.

The Budget also did not offer relief on GST rationalisation, input tax credit or special incentives for developers. Income tax benefits on home loan principal and interest remain unchanged despite inflationary pressures, while the long-standing demand for industry status for real estate has again been overlooked.

While describing the Budget as growth-oriented and anchored in macro-economic reforms-backed by a Rs 12.2 lakh crore public capital expenditure outlay and Rs 14 lakh crore in higher state transfers-CREDAI West Bengal said the lack of targeted support for affordable housing was a missed opportunity. Revising the caps, the industry argued, would have aligned policy with market realities and strengthened buyer sentiment in urban housing markets.

Published by HT Digital Content Services with permission from Millennium Post.