• News by Month

  Select Month February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006

• News by City

  • Bangalore
  • Chennai
  • Delhi
  • Faridabad
  • Gurgaon
  • Hyderabad
  • Kolkata
  • Mumbai
  • Noida
  • Pune

• News by Category

  • NRI
  • FDI
  • Home Loans
  • Real Estate India
  • Banking and Finance
  • Real Estate Developers

« Trikona Advisers claims Rs 800 cr damages | Home | Indian Real Estate Sector Cautious about Expansion »

Govt as well as Realtors to Focus on Affordable Housing

Last year the Indian real estate market was badly hit by financial turmoil that resulted in low demand and huge amount of debt. However, it didn’t change the fact that by 2010 India will be facing a shortage of over 25 million homes all mostly in the affordable housing space. Industry experts say this year the focus of the government should and would be on affordable housing. The focus should be on home loans, incentivising developers to build low cost housing and to enable funds to be more easily accessible for the sector.

Overall, housing constitutes 70 per cent of India’s real estate sector and employs almost 20 million people and sops for housing are a must. “Housing and infrastructure will be the trigger for growth over the next two decades. Affordable housing should be the focus. PPP projects need to be encouraged and other measures like extending 80(i) b needs to be considered,” said Dharmesh Jain, chairman of real estate body, CREDAI. CREDAI has submitted its recommendations for this year’s Budget to the finance minister. These include raising the limit of principal amount reduction on home loans to Rs 3 lakh from current Rs 1 lakh.

CREDAI has suggested extension of tax holiday for housing projects under Section 80 IB (10) to allow for new Lower and middle income projects. CREDAI has suggested ECBs to be permitted for funding costs of those real estate projects which qualify for 100 per cent FDI. Other recommendations include: reduction of capital gains burden under 56 (B); time limit for notification of Industrial Parks be extended to 31st March 2015; removal of service tax on renting of immovable property, affecting mainly the commercial segment and clearance of REITs as investment vehicles.

“We need to able to give investors an opportunity to invest in commercial property. Measures like REITs need to come into play,” said Pranay Vakil, chairman of Knight Frank. The last couple of years saw an impetus on infrastructure and roads but this year the industry is hoping those roads will lead to affordable housing for all.

News Published Under:   Real Estate India | No Comments »

Comments

Name (required)   

Mail (required)      

URL