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Experts suggest policy steps to boost affordable housing in urban areas

Experts suggest policy steps to boost affordable housing in urban areas
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Experts suggest the government to liberalise obsolete development norms, rationalise floor area ratio and density in order to address shortage of housing in urban areas.

According to experts, the process of urbanisation may grow at a compounded annual growth rate of more than two per cent over the next two decades and this calls for change in policy towards affordable housing.

Experts suggest the government to expedite policy initiatives towards public-private partnership model. For that, the city development agencies should give up policy of land auctioning and instead allow land pooling for developer entities, experts argue.

Experts also suggest the government to adopt incentivized policies for developers to provide mass housing in the suburbs and satellite towns of metros and Tier I cities.

For developers, the tax exemption for low-income houses up to 60 square metre carpet area and extension of tax holidays for low-income housing under Sec 80 1B of the Income Tax Act could prove beneficial, experts argue.

Some industry watchers suggest the government to raise home loan limit for affordable homes in the metros and tier I cities from Rs 2.5 million to Rs 3.5 million.

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