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Big push to Housing For All: How tax sops are cementing affordable inventories in Delhi-NCR and other metros
There is 100 per cent rebate for developers developing 500 sq ft units and GST of 1 per cent , which makes affordable house property a hot cake in the real estate market.
It seems that affordable housing has become a blue-eyed boy of the Indian real estate. Recently, in a CII-ANAROCK conducted survey report, it has been found that near 55 per cent of the net affordable house supply has come from Delhi-NCR and Mumbai Metropolitan Region or MMR. Industry insiders are of the opinion that major reasons for this is the rising population in these two metros leading to rising in demand and tax sops under the scheme are the major reason for this rise in supply.
Putting the light on the matter Pradeep Aggarwal, Chairman of National Council on Affordable Housing at ASSOCHAM told Zee Business online, "There is 100 per cent rebate for developers developing 500 sq ft units and GST of 1 per cent, which makes such property a hot cake. If even the property tax on such property is exempted then it will lead to a swarm of developers competing to make these homes available for the buyers. Also, the step is necessary among all the other real estate sops if we want to realise the dream of ‘Housing for All' in the shortest possible time."
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Anuj Puri, Chairman ANAROCK Property Consultants said, “The ‘Housing for All by 2022’ mission threw a much-needed lifeline to the affordable housing segment. The term 'affordable' has become respectable and builders who earlier shied away from it now hold huge portfolios in this category. This segment grew tremendously on the back of multiple sops introduced to both buyers and developers over the last five years.” He said that affordable housing was given the much-coveted infrastructure status, and the very definition of affordable housing has been tweaked to accommodate more inventory under this key category. Moreover, the previously highly speculative markets of NCR and MMR have been tamed and are, in fact, leading the thrust of affordable housing today.
Connecting the rise in population of Delhi-NCR and Mumbai with the rise in affordable house supply Rakesh Yadav, CMD, Antriksh India Group said, "Delhi-NCR and Mumbai region has become home to the job seekers living in remote, tier-2 and tier-3 cities of India. Since Delhi-NCR and Mumbai have been the major drivers in the job markets, the population of these two metros has risen sharply in the last five years. This additional rise in population has further fuelled the affordable house markets that forced developers to supply more such houses."
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