Nashik: NAREDCO Seeks Policy Reforms To Boost Affordable Housing In Tier-2, Tier-3 Cities

Nashik: NAREDCO Nashik has called for a series of policy reforms to strengthen the affordable housing sector, particularly in Tier-2 and Tier-3 cities, at a national consultation meeting organised by the Union Ministry of Housing and Urban Affairs (MoHUA) in New Delhi on August 11.

NAREDCO Nashik president Shantanu Deshpande and honorary secretary Bhavik Thakkar participated in the meeting held at Vigyan Bhavan, where they presented the organisation’s recommendations on improving the viability of affordable housing projects and increasing private-sector participation.

The consultation provided an opportunity to understand the Centre’s vision and future policy direction for affordable housing. NAREDCO Nashik also submitted a detailed memorandum outlining reforms it believes are necessary to address rising land and construction costs and growing housing demand.

Deshpande and Thakkar subsequently met Rajiv Gauba, Member, NITI Aayog, and Kuldeep Narayan, Joint Secretary (Housing for All), Ministry of Housing and Urban Affairs, and presented the organisation’s recommendations. Both officials responded positively to the proposals and assured the delegation that the suggestions would be considered seriously.

Key recommendations
NAREDCO Nashik has proposed:
Increasing the price ceiling for affordable homes from ₹45 lakh to ₹75 lakh, considering the sharp rise in land and construction costs.
Providing a 50% concession in stamp duty on registration of affordable homes to reduce the financial burden on first-time homebuyers.
Providing full or special concessions on Premium FSI and TDR charges for affordable housing projects.
Reintroducing tax benefits under Section 80-IBA of the Income Tax Act to encourage greater private-sector investment and participation in affordable housing.

NAREDCO Nashik said cities such as Nashik are witnessing rapid urbanisation, rising land prices and increasing demand for housing. It stressed that complementary policy decisions by both the Central and state governments are essential to make affordable housing projects financially viable.

The organisation expressed confidence that positive consideration and implementation of its recommendations would improve the economic viability of affordable housing projects, encourage greater participation by developers and accelerate the supply of quality, affordable homes for the common citizen.