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 estate industry.

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 affordable housing.

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 housing.

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 released.

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.