Budget 2024: Reviving Affordable Housing - A Sector in Crisis
The real estate sector is seeking 'high-impact' measures to revive affordable housing, including special schemes, tax breaks, and revised pricing definitions.
Real EstateAffordable HousingBudget 2024Housing SectorIndustry DemandsReal EstateJun 28, 2024
According to data from Anarock, the sales share of affordable housing in India has significantly reduced from 38% in 2019 to 20% this year. The share of affordable homes in the overall supply has also fallen to 18% this year, from nearly 40% in 2019.
Industry experts believe that the segment must be revived with measures like tax breaks for developers, so they can focus more on affordable housing, and for buyers, to improve affordability. Special schemes and subsidies should be introduced for affordable homes in metro cities, considering the unique challenges faced by these regions.
Some executives also emphasize the need to redefine affordable housing. The present limit should be increased from 90 square meters and Rs 45 lakh in terms of space and pricing, respectively. The government must seriously reconsider revising the pricing of homes within the affordable housing budget, taking into consideration city-specific market dynamics.
Additionally, the state governments should be motivated to reduce stamp duty on affordable housing to make these homes more accessible. Introducing interest subsidy programs could incentivize potential homebuyers effectively. Other demands include granting industry status to the sector and raising tax exemption limits on home loan repayments.
With the affordable housing segment struggling to regain momentum, the sector is eyeing a boost from the government's initiatives. Will the Budget 2024 bring the much-needed relief to the sector?
Frequently Asked Questions
What is the current sales share of affordable housing in India?
The sales share of affordable housing in India has reduced to 20% this year, from 38% in 2019.
What are the industry's demands for affordable housing in metro cities?
The industry is seeking special schemes and subsidies for affordable homes in metro cities, considering the unique challenges faced by these regions.
What is the current definition of affordable housing in India?
Affordable housing is defined as a house or flat with a carpet area up to 90 square meters in non-metropolitan cities and towns, and 60 square meters in major cities, valued up to Rs 45 lakh for both.
What are the suggested revisions to the affordable housing pricing definition?
Industry experts suggest revising the pricing definition to at least Rs 85 lakh in Mumbai, and Rs 60-65 lakh in other top cities.
What other initiatives can boost the affordable housing segment?
Initiatives like reducing stamp duty, introducing interest subsidy programs, granting industry status to the sector, and raising tax exemption limits on home loan repayments can boost the affordable housing segment.
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