+
New government must revamp realty sector policies: NAREDCO
Real Estate

New government must revamp realty sector policies: NAREDCO

The Realtors Association of North America (NAREDCO) requested that the incoming administration implement legislative changes to support the real estate industry's growth and offer tax breaks to developers and house purchasers to increase demand for homes. The group also aimed to expedite the process of obtaining project development clearances.

In response to the results of the Lok Sabha elections 2024, NAREDCO National President G Hari Babu stated that the real estate sector was at a crucial juncture, with significant growth potential yet facing considerable challenges. He emphasised the need for government support to achieve the goal of reaching a market size of $1 trillion by 2030 and transforming into a net-zero carbon industry by 2047. According to Babu, addressing the issue of rising home loan EMIs, implementing key policy reforms, and introducing sustainability incentives were imperative. He highlighted the importance of making affordable housing more accessible by adjusting financial limits and providing incentives for builders to ensure progress. Babu expressed the organisation's specific requests to the government, urging action to tackle the increasing home loan EMIs and interest rates. He pointed out the significant rise in interest rates from 6.25 percent before COVID-19 to around 8.75 percent presently, which has made monthly EMIs prohibitively expensive, particularly for middle-class families. Babu appealed to the government to alleviate this burden by offering lower interest rates for affordable housing loans. Moreover, Babu stressed the necessity of specific policy reforms to stimulate growth in the real estate sector, particularly in the affordable housing segment. He emphasised the expectation for the government to implement policy reforms and incentives to support the growth and sustainability of the real estate sector. These reforms, according to him, could include financial incentives for sustainable building practices and subsidies or tax breaks for developers focusing on affordable housing projects. Samir Jasuja, CEO and MD of real estate data firm PropEquity, highlighted the significant surge in real estate prices in recent years, almost doubling in the last four years. He pointed out that tax deductions offered on home loans haven't kept pace with these rising property values, effectively halving the benefit of these deductions. Jasuja emphasised the need for reforms to incentivize both buyers and investors to achieve the government's objective of a $1 trillion real estate industry. Pradeep Aggarwal, Founder and Chairman of Signature Global (India), emphasised the crucial role of the infrastructure sector alongside real estate in achieving the goal of 'Vikshit Bharat'. He expressed confidence that the new government would continue focusing on infrastructure development beyond metro and large cities, as well as on the real estate sector, considering their multiplier effect on the economy. Aggarwal expressed hope that the new government would extend income tax benefits on home loans in the new income tax regulations and address challenges faced by these sectors, including easing the burden of Goods and Services Tax (GST) on both developers and consumers.

The Realtors Association of North America (NAREDCO) requested that the incoming administration implement legislative changes to support the real estate industry's growth and offer tax breaks to developers and house purchasers to increase demand for homes. The group also aimed to expedite the process of obtaining project development clearances. In response to the results of the Lok Sabha elections 2024, NAREDCO National President G Hari Babu stated that the real estate sector was at a crucial juncture, with significant growth potential yet facing considerable challenges. He emphasised the need for government support to achieve the goal of reaching a market size of $1 trillion by 2030 and transforming into a net-zero carbon industry by 2047. According to Babu, addressing the issue of rising home loan EMIs, implementing key policy reforms, and introducing sustainability incentives were imperative. He highlighted the importance of making affordable housing more accessible by adjusting financial limits and providing incentives for builders to ensure progress. Babu expressed the organisation's specific requests to the government, urging action to tackle the increasing home loan EMIs and interest rates. He pointed out the significant rise in interest rates from 6.25 percent before COVID-19 to around 8.75 percent presently, which has made monthly EMIs prohibitively expensive, particularly for middle-class families. Babu appealed to the government to alleviate this burden by offering lower interest rates for affordable housing loans. Moreover, Babu stressed the necessity of specific policy reforms to stimulate growth in the real estate sector, particularly in the affordable housing segment. He emphasised the expectation for the government to implement policy reforms and incentives to support the growth and sustainability of the real estate sector. These reforms, according to him, could include financial incentives for sustainable building practices and subsidies or tax breaks for developers focusing on affordable housing projects. Samir Jasuja, CEO and MD of real estate data firm PropEquity, highlighted the significant surge in real estate prices in recent years, almost doubling in the last four years. He pointed out that tax deductions offered on home loans haven't kept pace with these rising property values, effectively halving the benefit of these deductions. Jasuja emphasised the need for reforms to incentivize both buyers and investors to achieve the government's objective of a $1 trillion real estate industry. Pradeep Aggarwal, Founder and Chairman of Signature Global (India), emphasised the crucial role of the infrastructure sector alongside real estate in achieving the goal of 'Vikshit Bharat'. He expressed confidence that the new government would continue focusing on infrastructure development beyond metro and large cities, as well as on the real estate sector, considering their multiplier effect on the economy. Aggarwal expressed hope that the new government would extend income tax benefits on home loans in the new income tax regulations and address challenges faced by these sectors, including easing the burden of Goods and Services Tax (GST) on both developers and consumers.

Next Story
Real Estate

DLF Returns to Mumbai with Premium Andheri Residential Project

Delhi-NCR based real estate major DLF announced its return to the Mumbai market on 17 July with the launch of its premium residential project, The WestPark, in Andheri. The first phase includes 416 apartments spread across four towers, with two towers launched on the announcement day. The company plans to invest over Rs 8 billion in the project and expects a topline exceeding Rs 20 billion from Phase 1.“We have launched two towers and, given the strong response, plan to unveil the remaining two towers ahead of schedule, within the next few days,” said Aakash Ohri, Joint Managing Director o..

Next Story
Infrastructure Urban

APCRDA Advances Net Zero Goal with IGBC Training for Officials

In a significant stride towards Andhra Pradesh’s Net Zero target by 2040 and the Swarna Andhra 2047 vision, the Andhra Pradesh Capital Region Development Authority (APCRDA), in partnership with the Indian Green Building Council (IGBC), conducted a high-level capacity-building programme for senior officials in Vijayawada on Friday.Held at a city hotel, the session saw the participation of over 50 senior APCRDA officials, including the Engineer-in-Chief, Chief Engineer (H&B), Director (Planning), Director (Environment), and heads of key departments. The training centred on IGBC’s Green B..

Next Story
Infrastructure Energy

Assam Solar Project Halted as Waaree EPC Contract Is Cancelled

Following the Assam government’s withdrawal from its proposed solar project, the Engineering, Procurement, and Construction (EPC) contract awarded to Waaree Renewable has been suspended. Waaree Group’s EPC division informed the stock exchange of this development through a regulatory filing.The Assam solar project was suspended due to funding challenges, which rendered the initiative unviable for the state government. Waaree Renewable Transmission Limited (RTL) explained that the Government of Assam has withdrawn the project’s funding via the Asian Development Bank (ADB) loan. Consequentl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?