The concept of affordable housing has come as a blessing in disguise which will not only help revive the real estate sector in India but will also take it to another level. The affordable segment has turned out to be an unexpectedly good result for the real estate sector. The government’s focus on affordable housing through schemes such as PMAY, lower GST, helped improve demand in affordable housing. With these steps, the foundation for a successful recovery in the sector has now been positioned.
As per the data – Affordable houses (worth ₹50 lakh) accounted for 55% of the sales in 2019. Moreover, of the total launches of 269,000 units in 2019, 57% were from the affordable segment. Also in the recent Union Budget 2020-21, affordable housing tax breaks extended by one year that is tax holiday on profits earned by developers of affordable housing projects approved by March 31, 2020. Govt extends an additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to 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, “Affordable housing is a trending concept in India will soon witness the completion of the government objective of Housing for All. Adding on, this will also increase the competition which will greatly benefit the Indian buyers. In a nutshell, the concept of affordable housing has come as a blessing in disguise which will not only help revive the real estate sector in India, but will also take it to another level.”