Developers seek support to implement low cost housing projects

Developers seek government support for effective implementation of low cost housing projects.

Navin Raheja, President, National Real Estate Development Council (NAREDCO) at an event organized for 'Affordable Housing' said that for effective implementation of low-cost housing projects, it is imperative that the government ensures availability of land at subsidised rates, gives fast approvals and relief on property tax.

Besides this, it is also important that the government looks into funding support on additional FSI, connectivity to suburbs and creation of special residential zones and so on.

The low cost housing project is for buyers, especially for those who are still not part of formal banking channels. This scheme will be a combination of low-cost housing coupled with easy credit options to them.

"Real Estate Industry (Infrastructure) status should be granted to the realty sector," said Raheja. This initiative will help the sector in getting government incentives, subsidies and tax benefits. This will lead to lower cost of funding and taking loans from financial institutions will become cheaper translating into more supply of affordable houses.

In most states, the floor area ratio (FAR) density and ground coverage norms do not support the creation of affordable housing, and the long approval process is another major problem. "In addition, major cities land cost is also very high, and hence; an upward revision of FAR, ground coverage and population density norms are required ton a priority basis," adds Raheja of NAREDCO.