Realty sector seeks govt push for affordable housing segment

The real estate sector wants “highimpact” measures like special schemes and tax breaks for developers to revive the fortunes of the affordable housing segment in the country, multiple executives told Business Standard. This segment has been struggling since the Covid-19 outbreak, in contrast to larger and costlier homes which have been selling like hot cakes.

The demand comes at a time when the government is taking suggestions from industry players before tabling the Union Budget in Parliament next month.

According to the data from real estate consultancy Anarock, the sales share of affordable housing in India reduced significantly from over 38 per cent in 2019 to 20 per cent this year. Due to low demand, the share of affordable homes in the overall supply also fell to 18 per cent this year, from nearly 40 per cent in 2019.

“Considering the specific housing needs of India’s lower-income groups, this momentum cannot ride solely on higherpriced homes while affordable housing continues to languish,” said Anuj Puri, chairman at Anarock Group.

He said that this segment must be revived with “high-impact” measures like tax breaks for developers so that they can focus more on affordable housing, and for buyers, to improve affordability.

Himanshu Jain, vice president, sales, marketing & CRM, Satellite Developers

Private Limited (SDPL) added that special schemes and subsidies should be introduced for affordable homes in metro cities.

“Strengthening policies and providing additional incentives to developers engaged in affordable housing projects will ensure that more citizens can achieve their dream of home ownership,” Jain said.

“Metro cities, particularly Mumbai, face unique challenges due to high land and construction costs. We urge the government to introduce special schemes and subsidies tailored for affordable housing in metropolitan regions,” he said.

Some executives also said that the definition

of affordable homes must be changed. “We are also seeking a redefinition of affordable housing. The present limit should be increased from 90 square metres (sq m) and ~45 lakh in terms of space and pricing, respectively,” said Manoj Gaur, CMD at Gaurs Group.

According to the Ministry of Housing and Urban Poverty Alleviation, affordable housing is defined based on property size, price, and buyers’ income. Affordable housing is a house or flat with a carpet area up to 90 sq m in non-metropolitan cities and towns, and 60 sq m in major cities and valued up to ~45 lakh for both.