NAREDCO Urges Stamp Duty Cut to Boost Affordable Housing Demand
The National Real Estate Development Council (NAREDCO) has called on state governments to reduce stamp duty on affordable homes priced up to ₹45 lakh to stimulate demand and supply in the low-cost housing segment. This move is aimed at addressing the growing housing deficit in major Indian cities.
Affordable HousingStamp DutyNaredcoReal EstateUrban Housing DeficitReal Estate MumbaiAug 30, 2025
Addressing NAREDCO's annual convention, the association's president, G Hari Babu, highlighted the declining sales and launches of apartments costing up to ₹45 lakh. He emphasized the need for states to bring down the stamp duty on registration of affordable homes to 1 per cent for women and 3 per cent for men. Currently, the stamp duty ranges between 5 per cent and 10 per cent across states.
Hari Babu also suggested that states should focus on slum redevelopment to increase the supply of affordable housing. He stated, “The affordable housing sector faces significant challenges, and reducing stamp duty is a crucial step to make these homes more accessible to the masses.”
NAREDCO Chairman Niranjan Hiranandani expressed similar concerns over the decline in launches and sales in the affordable housing category. NAREDCO, in collaboration with real estate consultant Knight Frank India, released a report titled 'Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms.' The report underscores critical supply challenges in India's affordable housing sector.
According to the report, the ratio of launches of affordable homes to sales of housing units costing up to ₹50 lakh across the top eight cities has dropped to 0.36 in 2025 (until June), from 1.05 in 2019 and 1.30 in 2020. These eight cities include Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai, and Ahmedabad.
The report also highlights the scale of India's affordable housing challenge, with a current deficit of 9.4 million units, which could rise to 30 million units by 2030. Hari Babu emphasized that addressing this deficit is crucial for the economic and social development of urban areas.
NAREDCO's proposals are part of a broader strategy to ensure that affordable housing remains a priority for state governments. By reducing stamp duty and focusing on slum redevelopment, the association aims to make a significant impact on the urban housing market and improve the living conditions of millions of people.
Frequently Asked Questions
What is NAREDCO's main proposal to boost affordable housing?
NAREDCO has proposed that state governments reduce the stamp duty on the registration of affordable homes priced up to ₹45 lakh to 1 per cent for women and 3 per cent for men.
Why is the affordable housing sector facing challenges?
The affordable housing sector is facing challenges due to rising costs of land and construction, which have led to a decline in the sales and launches of low-cost apartments.
What is the current ratio of launches to sales in the affordable housing sector?
The ratio of launches of affordable homes to sales of housing units costing up to ₹50 lakh across the top eight cities has dropped to 0.36 in 2025 (until June), from 1.05 in 2019 and 1.30 in 2020.
Which cities are included in the report's analysis?
The report includes Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai, and Ahmedabad.
What is the projected housing deficit in India by 2030?
The report projects that the housing deficit in India could rise to 30 million units by 2030, from the current deficit of 9.4 million units.
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