“The real estate industry has increasingly gravitated toward luxury housing, resulting in a widening gap for the middle class and first-time homebuyers,” he noted.To address this problem, the FPCE has demanded the government to introduce a “subsidized interest rate scheme on home loans” for peers purchasing units in affordable or mid-range housing projects.
The grant should be provided only if the allotted party services the EMIs on time and there is no default on the part of the promoter.
To ensure transparency and prevent abuse, the government should issue clear and uniform guidelines defining ‘affordable’ and ‘mid-range’ housing, the association said.
These guidelines should encourage development in semi-urban areas to decongest major cities and towns. The rules should prescribe maximum allowable rates per square meter of carpet area. “The proposed incentive mechanism should be buyer-centric rather than promoter-centric. Instead of extending benefits directly to developers, the subsidy should flow to homebuyers, who bear the long-term financial burden of housing through home loans and interest payments,” Upadhyay said.
The association argued that such an incentive would stimulate real demand for housing and force promoters to launch projects that cater to the majority.
The FPCE also demanded a reduction in the tax burden on Resident Welfare Associations (RWAs).
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