Realtors Call for Stamp Duty Reduction to Boost Affordable Housing
India’s Realtors body, NAREDCO, has called on state governments to reduce the stamp duty on the registration of affordable homes priced up to ₹45 lakh per unit. This move is aimed at boosting the demand and supply of low-cost apartments in the country.
Pointing to the declining sales of apartments, NAREDCO’s president, G Hari Babu, highlighted the challenges faced by the real estate sector due to rising costs of land and construction. Speaking at their annual convention, Babu emphasized that the current stamp duty on registration of affordable homes, which ranges from 5 per cent to 10 per cent, is a significant barrier to sales.
“To encourage sales, states should bring down the stamp duty on registration of affordable homes to 1 per cent for women and 3 per cent for men,” Babu said. He also suggested that states focus on slum redevelopment to increase the supply of affordable housing.
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 highlights 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—Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai, and Ahmedabad—has plummeted to 0.36 in 2025 (until June), from 1.05 in 2019 and 1.30 in 2020.
Babu noted that the report underscores 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 the overall development and well-being of urban areas in India.
The real estate sector plays a vital role in the economy, and the reduction of stamp duty could provide a much-needed boost to the market. By making affordable homes more accessible, state governments can help alleviate the housing crisis and improve the quality of life for millions of people.
