Affordable housing needs Centre’s push, say realtors

WITH AFFORDABLE HOUSING losing its sheen in the past couple of years, top property realtors believe that intervention from government, in terms of subsidy schemes for borrowers or reduction in interest cost for land acquisition is the only way to revive interest in it.

- RAGHAVENDRA KAMATH

In the past couple of years, the share of affordable housing in total property sales has been consistently falling.

In 2020, it constituted of 39% of total sales. This number has dwindled to 19% in 2023, according to data from Anarock Property.

DINSIDE of Sa luxury flats rise 75% PAGE 18 Pavitra Shankar, managing director, Brigade Enterprises said that they will look at launching new affordable projects if government comes out with incentives for the segment. "There is definitely a need for government intervention in the form of incentives for developers, if the affordable housing segment is to grow significantly," Shankar said.

With land prices in both metro and nonmetro cities on the rise, along with input costs of construction material, it is highly challenging for builders to create viable projects in the segment.

ALSO, THE 45-LAKH cap for buyers to take advantage of the earlier-introduced subsidy scheme (credit-linked subsidy scheme) was also an impediment, added Shankar.

In addition, the withdrawal of Section 80-IBA (5), where developers were allowed a deduction of 100% of the profits derived from such projects, subject to certain conditions was not extended beyond March 21.