'Serious Action Needed on Low Cost Housing'
The upcoming Budget is an opportunity for Finance Minister Arun Jaitley to take "serious" action, says Irfan Razack, CMD of Prestige Group
Feb 25, 2015
Source : Profit.Ndtv.com
Irfan Razack, CMD Prestige Group


New Delhi: The Modi government has promised housing for all Indians by 2022; the ambitious plan is estimated to cost a whopping Rs 4 lakh crore, which is nearly thrice the country's annual planned expenditure.

However, analysts say the government has so far taken baby steps in this direction. Over the last nine months, it has offered tax sops on home loans, eased foreign investment norms in construction sector and allowed more means for the real estate sector to raise funds.

The upcoming Budget is an opportunity for Finance Minister Arun Jaitley to take "serious" action, says Irfan Razack, CMD of Prestige Group.

The government should earmark special zones in far-flung areas for affordable housing projects and these zones should be connected through metros, better roads etc., Mr Razack said. In the middle of the town, you can't build affordable housing projects because land rates are very high, he added.

Developers should also be given incentives to attract them to participate in the low margin affordable housing projects, analysts say.

"If certain number of low-income or mid-income housing units are built, then they (developers) should also be allowed to develop other type of housing projects," Mr Razack said.

He also stressed on the need for reduction in ownership cost for people. Interest subsidy should be given purchase of low-cost housing units and there is also a need to bring down charges like stamp duty, service tax etc, he added.

For more participation from private developers in low-cost projects, the chief of Prestige Group, also sought taxation relief on Real Estate Investment Trusts (REITs), which was first announced in the previous Budget. This will help developers to raise funds and take up more affordable housing projects, he added.

A real estate investment trust (REIT) is an entity listed on stocks markets that owns rental-yielding real estate assets such as leased office and shopping malls. REITs distribute most of their income to shareholders as dividends.

Latest Realty News

Feb 25, 2015
New Delhi: Modi’s “Housing for All” programme seeks to build 20 million homes over the next seven years in the world’s largest housing programme
Feb 25, 2015
New Delhi: Fair trade regulator CCI has probed 132 cases of alleged anti-competitive practises in real estate sector
Feb 24, 2015
Raipur: Credai Chhattisgarh is going to organize STATECON 2015
Feb 24, 2015
NEW DELHI: The government has directed civic agencies and district authorities not to allow any fresh unauthorized construction
Feb 24, 2015
MUMBAI: The state government has offered its 19 lakh employees home loans between Rs 20 and 50 lakh, depending upon the category of the city or district they work in
Feb 24, 2015
NEW DELHI: Delhi Chief Minister Arvind Kejriwal today joined Anna Hazare on his second day of protest against the contentious land ordinance
Feb 24, 2015
NEW DELHI: The controversial Land Acquisition Bill was introduced by the government in the Lok Sabha today
Feb 24, 2015
Mumbai: State Bank of India (SBI)wants the government to increase the upper limit for interest subvention (subsidy) of home loans from Rs 15 lakh to Rs 25 lakh
Feb 24, 2015
Visakhapatnam: Apartment builders in Visakhapatnam are postponing their new ventures due to a hike in sand and cement prices
Feb 24, 2015
New Delhi: NDA has held consultations on how to accommodate views critical of its proposed changes to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Latest Realty News Of State

Realty Talk's