Budget expectations 2021: NAREDCO

20 Jan 2021 CW Staff

NAREDCO believes that rental housing will play a vital role in achieving the target of ‘Housing for All’ by 2022. Some of the salient points in NAREDCO’s recommendations resonate with that projection. They are as follows:

Grant tax incentives to boost the segment.
More measures to ease the liquidity situation in the long-subdued real estate segment, including the one-time roll-over of loans given to developers.
No rent to be taxed for the period up to five years from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority.
Restructuring of loans or one time roll-over in case of the stressed assets at the options of banks. In such cases, the borrower will retain the asset classification of the restructured standard accounts as standard and the same will not be treated as NPA.
Interest rates on home loans should be below 7% per annum.
Stamp duty rates to be reduced by 50 per cent for all the real estate transactions entered and agreements registered on or before 31 March 2020.
Relaxation to be sought in the definition of affordable housing. The Rs 45 lakh price cap for the classification of a property as affordable housing to be done away with as it keeps most of the projects in the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) out of the ambit of “affordable housing”.

In our CW Budget 2021 series, we cover expectations from associations that represent our industries. Here is a list of expectations from Budget 2021 from National Real Estate Development Council (NAREDCO), the autonomous self-regulatory body set up in 1998 under the Ministry of Housing and Urban Affairs, Government of India. NAREDCO believes that rental housing will play a vital role in achieving the target of ‘Housing for All’ by 2022. Some of the salient points in NAREDCO’s recommendations resonate with that projection. They are as follows: Grant tax incentives to boost the segment.More measures to ease the liquidity situation in the long-subdued real estate segment, including the one-time roll-over of loans given to developers. No rent to be taxed for the period up to five years from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority.Restructuring of loans or one time roll-over in case of the stressed assets at the options of banks. In such cases, the borrower will retain the asset classification of the restructured standard accounts as standard and the same will not be treated as NPA.Interest rates on home loans should be below 7% per annum.Stamp duty rates to be reduced by 50 per cent for all the real estate transactions entered and agreements registered on or before 31 March 2020. Relaxation to be sought in the definition of affordable housing. The Rs 45 lakh price cap for the classification of a property as affordable housing to be done away with as it keeps most of the projects in the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) out of the ambit of “affordable housing”.

Infrastructure Transport

15 Sep 2025

Cabinet Approves Key Highway and Rail Projects in Bihar Region

The Union Cabinet on Wednesday approved the four-laning of the 84.2-km Mokama-Munger section of the Buxar-Bhagalpur high-speed corridor, a key industrial region in poll-bound Bihar. The Cabinet also sanctioned the doubling of the 177-km Bhagalpur-Dumka-Rampurhat railway line, which passes through Bihar, Jharkhand, and West Bengal, at a cost of Rs 31.7 billion.The Rs 44.5 billion highway project will be constructed under the hybrid annuity model, a variant of public-private partnership. The Mokama-Munger stretch was the only remaining two-lane section of the 363-km Buxar-Bhagalpur corridor. Fou..

Infrastructure Transport

15 Sep 2025

NGT Issues Notice on Bengaluru Twin Tunnel Project

The National Green Tribunal (NGT) on Wednesday issued notices in response to a petition filed by Bengaluru Praja Vedike and others, challenging the Bengaluru twin tunnel road project. Petitioners claim the project was “hastily announced” and bypassed mandatory environmental impact assessment procedures.Notices have been served to the Karnataka Government, Greater Bengaluru Authority, State Environment Impact Assessment Authority (SEIAA), Bengaluru Smart Infrastructure Ltd (B-SMILE), the Union Ministry of Environment, Forest and Climate Change, and project consultants.The 16.74-km twin-tube..

Real Estate

15 Sep 2025

India’s Residential Sales to Dip Slightly in FY26

Residential sales in India’s seven major cities are projected to decline by up to 3 per cent year-on-year in FY26 to 620–640 million square feet (msf), amid a moderation in sales velocity, according to ratings agency Icra.In FY25, sales stood at 643 msf, down 8 per cent YoY, following a sharp contraction in new launches and moderated demand in the affordable and mid-income segments. This slowdown came after the sector posted a robust compound annual growth rate of 26 per cent in area sales between FY22 and FY24.Icra noted: “Having seen a strong upcycle, the sector entered an equilibrium ..