There is no doubt that affordable housing has become the flavour of the season. Affordable Housing appears as a particularly bright opportunity within the attractive real estate sector of India. In order to bridge this demand – supply gap, the Government of India has taken major initiatives to provide a boost to affordable housing in India.
Due to the governmental initiatives, the concept of affordable housing has become an admirable concept. The concept is still growing; the goal to provide homes to all still prevails. The push from the government is encouraging the private sector participation to this concept.
The government extended the benefit available for the affordable segment under Section 80EEA for one more year. Section 80EEA allows an additional deduction of up to ₹1.5 lakh against the interest on home loan availed for affordable houses, whose value doesn’t exceed ₹45 lakh. This the deduction was available on home loans availed between April 2019 and March 2020; now it has been extended on loans taken till March 2021
Mr Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd. said, “The pragmatic positive trends for residential sector in 2020 are Rental Housing, Affordable Housing, where the key players of affordable housing like us will stay ahead in the game and we also believe that 2020 should be a turn-around year. Adding on, for 2020, it shows that revival in the residential segment will be more visible through ‘affordable housing’ demand which will drive long-term institutional funds to invest in this segment.