NAREDCO Proposes Higher Limit for Home Loan Interest Deduction

The National Real Estate Development Council (NAREDCO) has proposed a significant increase in the limit for interest deduction on home loans. This suggestion, made during the recent Estate Development Conclave, aims to provide financial relief to homebuyers and stimulate the real estate market.

The current limit for interest deduction on home loans is set at Rs. 2 lakh. NAREDCO believes that raising this limit would make home loans more affordable for a broader range of buyers, thereby boosting demand in the housing sector. This move is particularly important as the real estate market has been facing challenges due to economic uncertainties and a slowdown in demand.

NAREDCO, a prominent organization representing real estate developers across India, has been advocating for policies that can revitalize the sector. The proposed increase in the interest deduction limit is one of several recommendations aimed at making homeownership more accessible and affordable.

According to industry experts, the current limit of Rs. 2 lakh on interest deduction is insufficient to cover the high interest costs incurred by many homebuyers. The average interest paid on a home loan can often exceed this amount, especially for larger loans. By raising the limit, the government can provide significant tax relief to homebuyers, reducing their financial burden and encouraging more people to invest in property.

The suggestion to increase the interest deduction limit is not new. Similar proposals have been made in the past, but they have not been implemented. NAREDCO hopes that the current economic climate and the government's focus on housing for all will make this proposal more likely to be accepted.

In addition to the interest deduction limit, NAREDCO has also recommended other measures to support the real estate sector. These include simplifying the home loan application process, reducing the Goods and Services Tax (GST) on under-construction properties, and providing tax incentives for first-time homebuyers.

The real estate sector plays a crucial role in the Indian economy, contributing significantly to employment and GDP growth. However, it has faced several challenges in recent years, including rising costs, regulatory changes, and a slowdown in demand. The proposed measures, if implemented, could provide a much-needed boost to the sector and help it recover from its current downturn.

While the government has taken several steps to support the real estate market, including launching the Pradhan Mantri Awas Yojana (PMAY) and providing relief to homebuyers through various schemes, there is still a need for more comprehensive measures. NAREDCO's proposal to increase the interest deduction limit is a step in the right direction and could have a positive impact on both homebuyers and the broader economy.

The Estate Development Conclave, where NAREDCO made this proposal, is a premier national-level event for the real estate sector. It brings together industry leaders, policymakers, and stakeholders to discuss issues and opportunities in the real estate market. The conclave provides a platform for sharing insights, best practices, and innovative solutions to the challenges facing the sector.

The real estate industry is a significant contributor to India's economic growth and development. By addressing the concerns and suggestions of organizations like NAREDCO, the government can create a more favorable environment for investment and development in the sector. This, in turn, can lead to increased employment, higher GDP growth, and a better quality of life for homebuyers.

In conclusion, NAREDCO's proposal to increase the limit for interest deduction on home loans is a timely and important suggestion. If implemented, it could provide much-needed relief to homebuyers and help revitalize the real estate sector. The government should consider this proposal seriously and take steps to make homeownership more accessible and affordable for all Indians.