Budget 2024: Revitalizing India's Affordable Housing Sector
Real estate stakeholders demand government's focus on affordable housing in the upcoming budget
Affordable HousingBudget 2024Real EstateGstIndiaReal EstateJun 28, 2024
The demand for affordable homes remains strong, particularly in the Rs 15-75 lakh price bracket. To stimulate growth in this sector, the government should introduce interest subsidy programs to incentivize homebuyers. Additionally, offering land and capital at concessional rates to private developers could boost supply.
Implementing tax incentives for developers engaging in affordable projects could further stimulate activity in this sector. Furthermore, state governments should be motivated to reduce stamp duty on affordable housing to make these homes more accessible.
'Policies supporting affordable housing will help bridge the housing gap and ensure decent living conditions for all citizens,' says G Hari Babu, National President of NAREDCO. Expanding the definition of affordable housing to include homes up to Rs 75 lakhs with a larger carpet area of 90 sq. meters, along with the relaunch of the CLSS scheme or similar scheme, could also benefit homebuyers.
The real estate sector is hopeful that the government will prioritize affordable housing in the upcoming budget, which could catalyze growth in the sector and stimulate job creation in over 200 ancillary industries.
Information
NAREDCO (National Real Estate Development Council) is a national-level apex body of real estate industry, representing various stakeholders of the sector.
Housing.com is a leading real estate platform that provides comprehensive solutions for homebuyers and sellers. PropTiger.com is a leading online real estate advisory firm. Signature Global is a leading real estate developer with a focus on affordable housing.
Frequently Asked Questions
What is the current state of the affordable housing market in India?
The affordable housing market in India has performed poorly over the last five years, with its share in the overall housing market falling from 45% in 2017 to 15% in early-2024.
What are the factors affecting the affordability of homes in India?
Factors such as steep rises in raw materials and land prices have made it unviable for developers to build affordable homes.
What are the demands of the real estate sector from the government in the upcoming budget?
The sector is demanding aid for the faltering affordable housing sector, including introducing interest subsidy programs, offering land and capital at concessional rates, and implementing tax incentives for developers.
How can the government stimulate growth in the affordable housing sector?
The government can stimulate growth in the sector by introducing policies that support affordable housing, such as interest subsidy programs and tax incentives for developers.
What is the potential impact of prioritizing affordable housing in the budget?
Prioritizing affordable housing in the budget could catalyze growth in the sector, stimulate job creation in over 200 ancillary industries, and help bridge the housing gap in India.
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