NAREDCO Urges Stamp Duty Cut to Revive Affordable Housing Market
The National Real Estate Development Council (NAREDCO) is calling for a reduction in stamp duty to stimulate the demand and supply of affordable homes priced up to ₹45 lakh. The move aims to address the decline in sales and launches of low-cost apartments due to rising costs.
Affordable HousingStamp DutyReal EstateNaredcoHousing DeficitReal EstateAug 30, 2025
Addressing NAREDCO's annual convention, the association's president, G Hari Babu, highlighted that the sales and launches of apartments costing up to ₹45 lakh have decreased due to the rising costs of land and construction. 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 different states.
Hari Babu also suggested that states should focus on slum redevelopment to boost the supply of affordable housing. This approach could help address the significant housing deficit and provide more low-cost options for urban residents.
NAREDCO Chairman Niranjan Hiranandani expressed similar concerns over the decline in launches and sales in the affordable housing category. He noted that the issue is not just about demand but also about the supply of affordable homes. To tackle this, NAREDCO and real estate consultant Knight Frank India released a report titled 'Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms'.
The report highlighted critical supply challenges in India's affordable housing sector. It mentioned that the ratio of launches of affordable homes to sales of housing units costing up to ₹50 lakh across the top eight cities has plummeted to 0.36 in 2025 (until June), from 1.05 in 2019 and 1.30 in 2020. These eight cities are Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai, and Ahmedabad.
Hari Babu stated that the report has underlined the scale of India's affordable housing challenge, which currently stands at a deficit of 9.4 million units. This deficit could rise to 30 million units by 2030 if immediate action is not taken. The report calls for supply-side reforms and policy changes to address the housing crisis and ensure that affordable homes are available to those who need them most.
The National Real Estate Development Council (NAREDCO) is a leading real estate association in India, representing developers, builders, and other stakeholders in the housing sector. The organization aims to promote sustainable and inclusive growth in the real estate industry, with a particular focus on affordable housing. By advocating for reduced stamp duty and slum redevelopment, NAREDCO hopes to make a significant impact on the availability and affordability of housing in urban areas.
Frequently Asked Questions
What is NAREDCO's main concern regarding affordable housing?
NAREDCO is concerned about the decline in sales and launches of affordable homes priced up to ₹45 lakh due to rising costs of land and construction.
What stamp duty reduction is NAREDCO proposing?
NAREDCO is proposing a reduction in stamp duty to 1 per cent for women and 3 per cent for men on the registration of affordable homes priced up to ₹45 lakh.
What other measure is NAREDCO suggesting to boost affordable housing?
NAREDCO is suggesting that states should focus on slum redevelopment to increase the supply of affordable housing.
What does the report by NAREDCO and Knight Frank India highlight?
The report highlights the critical supply challenges in India's affordable housing sector and the significant housing deficit, which could rise to 30 million units by 2030.
What are the top eight cities mentioned in the report?
The top eight cities mentioned in the report are Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai, and Ahmedabad.
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