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

Dharavi Rising

Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government..

Next Story
Real Estate

MLDL Records 20.4% Growth in Pre-Sales

Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure development arm of the Mahindra Group, announced its financial results for the quarter ended March 31, 2025. In line with INDAS 115, the company recognises revenues using the completion of contract method. Key highlights FY25: Consolidated sales (Residential and IC&IC) of Rs 32.99 billion. Gross development value (GDV) additions in FY25 were Rs 1.81 trillion compared to Rs 440 billion in FY24 (~4x growth). Residential pre-sales of Rs 28.04 billion in FY25, reflecting 20.4% growth o..

Next Story
Infrastructure Transport

UCSL Delivers India's First Green Cargo Vessel to Norway

In a landmark achievement for Indian shipbuilding and the Atma Nirbhar Bharat initiative, Udupi Cochin Shipyard Limited (UCSL), a subsidiary of Cochin Shipyard Limited (CSL), has delivered the first of six next-generation green cargo vessels to Norway-based Wilson Ship Management AS, Europe’s largest short-sea shipping operator. The 3,800 DWT vessel, named Wilson Eco 1, was handed over during a ceremony at New Mangalore Port. The delivery is part of a Rs 5.06 billion project supported by Norway’s green maritime funding programme, marking India's entry into the European eco-friendly ca..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?