NAREDCO Urges State Governments to Reduce Stamp Duty for Affordable Housing
NAREDCO, the real estate body, calls for a reduction in stamp duty on affordable homes priced up to ₹45 lakh to boost demand and supply. The association highlights the decline in sales and launches due to rising costs and suggests slum redevelopment to address the housing deficit.
Affordable HousingStamp DutyReal EstateNaredcoUrban HousingReal Estate NewsAug 30, 2025
Addressing NAREDCO's annual convention, the association's president, G Hari Babu, pointed out that sales and launches of apartments, each costing up to ₹45 lakh, have declined significantly due to rising costs of land and construction. He emphasized the need for state governments to bring down the stamp duty on the 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 state governments should focus on slum redevelopment to increase the supply of affordable housing.
NAREDCO Chairman Niranjan Hiranandani expressed similar concerns about the decline in launches and sales in the affordable housing category. He highlighted the critical supply challenges in India's affordable housing sector, as outlined in a report released by NAREDCO and real estate consultant Knight Frank India titled 'Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms'.
The report revealed 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 cities include Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai, and Ahmedabad.
Hari Babu stressed that the report has underlined the scale of India's affordable housing challenge, with a current deficit of 9.4 million units that could rise to 30 million units by 2030. Addressing this deficit is crucial for ensuring that a significant portion of the population has access to affordable housing, which is a fundamental need.
The reduction in stamp duty and focus on slum redevelopment are seen as key measures to stimulate the affordable housing market. These steps could help in increasing the supply of affordable homes, making it easier for first-time buyers and low-income families to own their homes. The real estate sector plays a vital role in the economy, and addressing the affordable housing crisis is essential for sustainable urban development and social equity.
Frequently Asked Questions
What is NAREDCO's main request to state governments?
NAREDCO has requested state governments to 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 has NAREDCO made this request?
NAREDCO has made this request to boost the demand and supply of low-cost apartments, which have declined due to rising costs of land and construction.
What is the current range of stamp duty on affordable homes across states?
The current range of stamp duty on affordable homes across states is between 5 per cent and 10 per cent.
What other suggestion did NAREDCO make to boost affordable housing?
NAREDCO suggested that state governments should focus on slum redevelopment to increase the supply of affordable housing.
What is the current affordable housing deficit in India, and what is the projected deficit by 2030?
The current affordable housing deficit in India is 9.4 million units, and it is projected to rise to 30 million units by 2030.
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