Realtors Call for Stamp Duty Reduction to Boost Affordable Housing
NAREDCO urges state governments to reduce stamp duty on affordable homes to stimulate demand and address the housing deficit.
Real EstateAffordable HousingNaredcoStamp DutyHousing DeficitReal Estate NewsAug 30, 2025
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.
Frequently Asked Questions
What is NAREDCO's main request to state governments?
NAREDCO is urging state governments to reduce the stamp duty on the registration of affordable homes priced up to ₹45 lakh per unit.
Why is reducing the stamp duty important?
Reducing the stamp duty is important to boost the demand and supply of low-cost apartments, which have been declining due to high costs of land and construction.
What is the current range of stamp duty on affordable homes?
The current stamp duty on affordable homes ranges from 5 per cent to 10 per cent.
What does NAREDCO suggest for women and men in terms of stamp duty?
NAREDCO suggests that states bring down the stamp duty to 1 per cent for women and 3 per cent for men.
What is the current housing deficit in India, and what is the projected deficit by 2030?
The current 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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