Realty wants sops, affordable housing push
₹45 lakh for affordable housing, in the metros, and a further increase in Mumbai, experts said. (Affordable housing is defined as a house or apartment valued up to ₹45 lakh, with a carpet area of up to 90 square metres, located in non-metros and villages, and 60 square metres in large cities.) “…Raising the limit from ₹45 lakh to ₹1 crore for metro city home buyers will significantly benefit the affordable housing segment, making homes more accessible," said Pritam Chivukula, vice-president of industry body Confederation of Real Estate Developers’ Association of India- (Maharashtra Chamber of Housing Industry (Credai-MCHI). Around 476,530 residential units were sold in 2023 compared to 364,870 units in 2022, according to Anarock Property Consultants.
However, the share of budget home sales has shrunk to 20% in 2023 from 35–40% before the pandemic. The segment’s share in total housing supply in top sevem cities fell to 18% in 2023 from 40% in 2019. Industry leaders are also batting for an increase in the deduction limit for home loan interest payments under Section 24(b) of the Income Tax Act.
With the turnaround in residential sector, prices have increased, leading to homebuyers having to borrow more. “We propose an increase in the tax rebate on home loan interest. Raising the current limit from ₹2 lakh to ₹4 lakh could be a game-changer, helping to sustain current strength in demand," said Dhruv Agarwala, group CEO, REA India (Housing.com, Pro-ptiger.com and Makaan.com).
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