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Budget 2024: Emphasis should be placed on affordable housing in the budget, CBRE gave these suggestions

Sagar Patel

By Sagar Patel

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The budget should focus on affordable housing

Everyone dreams of owning their own home. The government’s affordable housing scheme is very effective in making this dream of the people a reality. In this regard, people are encouraged to buy houses worth up to Rs 45 lakh, but due to rising property prices, it is very difficult to get a house at this price in big cities like Delhi-NCR and Mumbai. In such a situation, CBRE has given some suggestions to increase its reach. It has appealed that in the general budget of the year 2024-25, the government should make changes in the cost of property, including carpet area, etc., to increase access to affordable housing.

What are the current criteria for affordable housing?

As per the current norms for affordable housing, the cost of the property should be up to Rs 45 lakh. While the carpet area (60 sq m to 90 sq m) and the income of the home buyer should be in the EWS and LIG categories. In such a situation, CBRE has said in its budget-related suggestion that to improve the scheme, the criteria of cost, size and income should be expanded, so that more and more people can benefit from it.

Create different supports according to metropolitan cities.

Anshuman Magazine, CEO & President (India), CBRE, suggests that in this budget, the government should increase the existing scale of affordable housing for metro cities. Especially the area size should be increased to more than 90 sq m. The government should decide the eligibility criteria based on the dynamics of the city and state. They should create three or four tranches of units, sizes and prices, because housing prices in big metro cities, especially Mumbai and Delhi-NCR, are much higher than other cities.

Attention should also be focused on these classes.

The government runs the Pradhan Mantri Awas Yojana (PMAY) to provide financial assistance for the construction of rural and urban houses; the government had increased its budget to construct three crore additional houses under this scheme. This announcement by the Cabinet gave a major boost to the affordable housing sector. Keeping this in mind, in the interim budget of 2024-25, the government had talked about starting a separate scheme for eligible sections of the middle class living in rented houses, slums, chawls and unauthorised colonies. CBRE in its suggestion has said that this scheme should be implemented at the earliest.

Demand to restart tax exemption on mortgage loans

First-time home buyers in the affordable housing category get the benefit of a tax deduction of Rs 1.5 lakh on the interest paid on home loan under Section 180EEA. This deduction was extended till March 31, 2022. This came as a major relief to home buyers. CBRE has called for taking up this initiative in its suggestion report.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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