By Accommodation Times Bureau
Every year during the same time, demand is made by developers to reduce interest rates and tax breaks for affordable housing segment. However focused efforts by developers for affordable housing are never visible. Most of the projects launched in major urban centres have disregarded the affordability norm. Focus on upper middle class and luxury projects continues to be the interest of the developer. Focus on luxury is also reflected in size of dwelling units being planned and also in terms of amenities being provided, said Mr. Amit Bhagat, CEO & MD, ASK Property Investment Advisors.
Rohokale added that “the remedy for real estate demand is not in interest rate subsidy, but conscious and focused effort by developers to plan for affordable housing in terms of right size and right price dwelling units which has the bulk of the demand.”
One of the most critical demands that need to be addressed by the exchequer is that of service tax and lower stamp duties which can reduce the burden on the end customer.
An integrated effort should be made by Ministry of Housing & Urban development in co-ordination with Reserve bank of India / National Housing Bank and tax authorities in providing tax breaks to developers constructing houses below carpet area of 650 sq. ft. provided the sale consideration for the house as per guideline value and or sale consideration is not exceeding Rs 25 Lacs because this is the only segment which needs fiscal incentive and is rightly defined as priority sector lending.