Housing and Urban Affairs Secretary is working on a government program to assist middle-class citizens in build
By Bricksnwall | 2024-02-05
During the Naredco conference, the MoHUA secretary stated that the
country's economy will reach $30 trillion by 2047, with the real estate
industry playing a crucial role in this process.
A senior official in the Ministry of
housing and Urban Affairs stated that the government is "working on the
scheme," one day after Finance Minister Nirmala Sitharaman announced in
her Budget 2024 speech that the government will introduce a housing scheme to
enable the middle class to own or construct their own homes.
At the NAREDCO National Convention on February
2, housing and Urban Affairs Secretary Manoj Joshi stated that the government
is "working on a scheme" to assist middle-class individuals in buying
or building their own homes. In addition, he stated that the country's economy
will grow to be $30 trillion by 2047, with a major contribution from the real
Joshi stated, "We need different
ways to cross-subsidize affordable housing," and that it is important to
encourage affordable housing.
"There is a dearth of inexpensive
housing, and the government's top goal is to collaborate with state and local
governments in urban areas to ensure that the urban planning process produces
an adequate supply of affordable housing. Developers should be required by law
to produce at least 15% of all homes for the affordable market during the
entire urban planning process, he stated.
In the current fiscal year, he said,
the government had given the states ₹20,000 crore as special central assistance
to implement urban reforms like adopting town planning schemes, hiring urban
planners, and modifying building by laws to lower the cost of providing
Large communities have expensive land
and development costs. He stated that state governments need to strive toward
urban planning reforms in order to lower the cost of affordable housing.
When building 100 acres, a builder can
designate 15 acres for affordable housing, and at the same time, higher FSI
should be offered for less money. He informed reporters on the fringes of the
two-day Naredco Conference taking place in the capital that zoning laws and
construction codes have to be loosened as well in order to guarantee that
affordable housing gets a boost.
Additionally, he asked Naredco to
offer recommendations on how to expand the supply of affordable housing.
He continued, "We're also
looking at ways to improve transportation by providing for electric buses."
Minister of State for Housing and
Urban Affairs Kaushal Kishore urged the real estate industry and construction
companies not to underquote prices when it comes to housing and affordable
housing projects during his speech at the Naredco conference. In addition, he
stated that quality rather than sustainability should be the main priority in
He asked NAREDCO to make sure that housing
projects—particularly those that are affordable—are finished on time.
He asked NAREDCO to make sure that
housing projects—particularly those that are affordable—are finished on time.
Naredco requested that the government
concentrate on the National and State Master Plans in addition to the rental
housing policy. Nearly half of people live in rental homes in industrialized
nations like the USA, according to Niranjan Hiranandani, Chairman of Naredco.
Since the government is unable to
provide free housing for everyone, G Hari Babu, National President of NAREDCO,
suggested that inexpensive rental apartments could be an alternative.
At the 16th Naredco National
Convention in 2024, a Naredco KPMG report titled "Navigating the Dynamics
of Real Estate in India - Smart, Sustainable, and Connected" was also
The Indian real estate market is
expected to develop at a compound annual growth rate (CAGR) of 18.7% between
2020 and 2030. The market has shown impressive resiliency in recent years. The
industry is expected to grow from $180 billion in 2020 to $1 trillion by 2030,
driven by government initiatives, technological advancements, and environmental
initiatives, and higher investments, according to the report.
It was mentioned that in the first quarter of 2023, institutional investments increased by 37% year over year. A significant $2.4 billion in investments were made in proptech start-ups between January 2021 and March 2023.