Infra status gearing up to boost affordable housing projects

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Realtors’ body NAREDCO has said that the ‘infrastructure status’ granted to affordable housing along with other tax sops would help revive the sluggish property market.

The supply and demand of low-cost homes would increase as both existing and new players are expected to enter into this segment with reduction in borrowing costs after infrastructure status to affordable housing.

NAREDCO, however, demanded that the government should encourage public-private-partnership (PPP) model for the development of affordable housing projects in view of high land cost.

“With infrastructure status to affordable housing, liquidity in the sector will improve and borrowing cost of developers will also reduce. This will encourage both existing and new companies to enter this segment,” NAREDCO Chairman Rajeev Talwar said.

He said there will be huge development in affordable homes category, which has maximum demand.

“As there will be huge supply to meet demand, the prices are also expected to be low in affordable housing segment,” Talwar said.

Welcoming the Budget, NAREDCO President Parveen Jain said the borrowing cost of developer for construction of affordable homes would come down to below 10% from 14-15% in any other normal project.

Jindal Realty MD & CEO Gaurav Jain said the affordable housing segment would also get significant boost from the Budget proposal to extend completion period from 3 years to 5 years and change in the measurement norm from built-up area to carpet area.