Minister of State of Housing & Urban Affairs, Hardeep Puri, stated at the exclusive intuitional event held here today, that the Government has granted infrastructure status to affordable housing which will enable these projects to avail the associated benefits such as lower borrowing rates, tax concessions and increased flow of foreign and private capital. The announcements were also made pertaining to the affordable housing such as profit-linked income tax deduction, relaxations on tax for vacant/unsold units for 1 year, counting of the carpet area instead of the built-up area of 30 and 60 sq.m., among others.
Puri informed that RERA, REITs, GST, Benami Transactions (Prohibition) Amendment Act, land-related reforms, etc have also been introduced and, “These will be effective in spurring the housing and construction activities, providing huge relief to real estate developers. Also, these would attract private and foreign investments in the housing sector, having a positive multiplier effect on GDP and labour market,”
“We are aware that availability of encumbrance free land within existing municipal areas for urban housing schemes is not an easy task. Therefore, provision has been made to include rural areas falling within the notified Planning/Development areas, under the ambit of PMAY (U). It would leverage the availability of additional land at the cheaper cost for construction of affordable houses,” he added.
Puri said, Over the next five years until 2022, we will see affordable housing action on the ground unfolding at an increasingly rapid pace – and everyone, not least of all the country’s economy and most importantly the long-neglected end-user of affordable housing, stands to benefit.