While the prices of real estate keep skyrocketing, the only option left for buyers is to invest in affordable housing. But if reports are to be believed, the developers are now demanding for a hike on prices of affordable housing from the current Rs 45 lakh to Rs 1 crore.
According to the Hindustan Times, the National Real Estate Development Council (Naredco) submitted its recommendations to the central government's Finance Ministry and sought several exemptions — one of them to hike the affordability cap for metros, as they claim there is a premium cost of land and construction in metros. Earlier, CREDAI had submitted its recommendations to the Ministry, which also included amendments to RERA.
"Increase in the affordable housing limit in metros is now imperative as it will bring more projects and locations under the affordable ambit and of course, a larger section of the population will benefit. Premiums, cost of construction, land cost, etc. are much higher in metros, so like the bifurcation in carpet area for metros and non-metros, the prices, too, need to be amended. This will give impetus to developers and act as a catalyst to boost affordable housing," Ashok Mohnani, Chairman, EKTA World, and Vice President, Naredco told DNA.