NAREDCO Urges States to Reduce Stamp Duty for Affordable Homes Priced Up to ₹45 Lakh
NAREDCO, the real estate body, calls on state governments to reduce 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 a 1% duty for women and 3% for men.
Affordable HousingStamp DutyNaredcoReal EstateUrban Housing DeficitReal EstateAug 31, 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 due to rising costs of land and construction. "States should bring down the stamp duty on registration of affordable homes to 1 per cent for women and 3 per cent for men," he told PTI.
The president explained that the current 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 boost the supply of affordable housing.
NAREDCO Chairman Niranjan Hiranandani expressed concern over the decline in launches and sales in the affordable housing category. NAREDCO and real estate consultant Knight Frank India released a report titled 'Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms', which highlights critical supply challenges in India's affordable housing sector.
The report 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 said the report has underlined the scale of India's affordable housing challenge—a deficit of 9.4 million units that could rise to 30 million units by 2030. The report emphasizes the need for immediate and sustained efforts from both the government and the private sector to address this growing deficit and ensure that affordable housing is accessible to those who need it the most.
NAREDCO's call for reduced stamp duty is seen as a crucial step in making housing more affordable and accessible, particularly in urban areas where the demand for affordable housing is highest. By reducing the financial burden on homebuyers, especially women, the association hopes to stimulate the market and encourage more developers to focus on affordable housing projects.
The report also suggests that other supply-side reforms, such as easing land acquisition processes and providing incentives for developers, could further boost the supply of affordable homes. These measures, combined with reduced stamp duty, could help bridge the gap between demand and supply in the affordable housing market.
NAREDCO's efforts to advocate for these changes reflect the growing awareness of the importance of affordable housing in addressing urban poverty and improving the quality of life for millions of Indians. The organization continues to work closely with state governments and other stakeholders to implement these reforms and ensure a more equitable and sustainable housing market.
Frequently Asked Questions
What is NAREDCO's main recommendation to state governments regarding stamp duty?
NAREDCO recommends 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 has NAREDCO called for a reduction in stamp duty?
NAREDCO aims to boost the demand and supply of low-cost apartments by reducing the financial burden on homebuyers, especially in the face of rising costs of land and construction.
What is the current range of stamp duty across states?
The current stamp duty ranges between 5 per cent and 10 per cent across states.
What is the current ratio of launches to sales for affordable homes in the top eight cities?
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.
What is the projected deficit of affordable housing units by 2030?
The report projects a deficit of 30 million affordable housing units by 2030, up from the current deficit of 9.4 million units.
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