Good news for the real estate market of India, in a recent report by a real estate firm, reveals that sales in the affordable housing segment have risen to almost three times in the current fiscal year. With various pricing trend in the affordable housing market by the Government, this data is seen as a boon to many first-time homeowners, in the affordable category.
According to the data by real estate consultancy firm Liases Foras, the share of affordable houses in the property market has gone up from 8 percent in FY16 to 21 percent in the current financial year.
The report says that with more focus from the developer’s end and intervention of subsidies to economically weaker sections of society by the central government this category has shown a steep growth.
“The implementation of the goods and services tax (GST) and the Real Estate (Regulation and Development) Act (RERA) have contributed to the rationalization of prices. Also, incentives offered by the government are drawing more buyers as well as developers to the affording housing segment.” Report added.
It further said that many big and renowned developers are shifting their base from the luxury segment to an affordable one so as to eye more and more home buyers and hence increase housing sales.
As per the affordable housing scheme launched by the government under the name of PMAY, those with annual incomes of less than Rs 18 lakh are eligible for a subsidy of Rs 2.3 lakh, which is paid out upfront on a home loan. Besides this, homebuyers can also avail income tax exemption on loans for housing. On the other hand, for developers, the govt has decided to give 100 percent tax deduction on profits.