Moneycontrol Be a Pro
Get App
Last Updated : Aug 19, 2019 04:06 PM IST | Source: Moneycontrol.com

Developers urge higher cap in metros for affordable housing segment: Report

The National Real Estate Development Council has recommended to the ministry of finance that the cap be raised from Rs 45 lakh to Rs 1 crore

Moneycontrol News @moneycontrolcom
Representative image
Representative image

The National Real Estate Development Council (NAREDCO) has recommended to the ministry of finance that the upper price limit in the definition of affordable housing for metro cities be raised from the current Rs 45 lakh to Rs 1 crore, DNA has reported.

Since land and construction cost come at a premium especially in metros, the council has sought relaxation of the norms by amendments to the Real Estate (regulation and development) Act, 2016.

This imperative amendment would bring more locations and projects under affordable housing, benefiting investors, a NAREDCO spokesperson told the daily.

Close

Confederation of real estate developers' associations of India (CREDAI) has also on its part recommended amendment of RERA in view of soaring property prices.

Currently, to avail credit subsidy benefits for affordable housing, a home must be priced at less than Rs 45 lakh and not exceed 60 sq metre carpet area or about 850 sq ft built-up area, including overall loading.

The affordable housing segment has seen rising demand which has been aided by lower goods and services tax (GST). As per a report by Livemint, this segment has emerged as the sweet spot for both builders and buyers, even in the current slowdown.

Also Read: What is RERA and how will it impact real estate?

RERA was enacted in 2016 to protect the interest of real estate buyers while maintaining transparancy in the process of projects. It covers both residential and commercial real estate, with a mechanism for redressal in the case of disputes.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Aug 19, 2019 04:06 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour