<p>New Delhi: The Confederation of Real Estate Developers' Associations of India (CREDAI) on Friday said it has requested the government to increase the price cap of affordable housing to Rs 90 lakh from the current Rs 45 lakh taking into consideration inflation and other cost factors.</p><p>Talking to reporters CREDAI President Shekhar Patel said the industry body was hopeful of a major announcement related to affordable housing in the upcoming budget.</p><p>A residential house/flat of carpet area of upto 90 square metres in non-metropolitan cities/towns and 60 square metres in metropolitan cities having value upto Rs 45 lakh (both for metropolitan and non-metropolitan cities) are categorised as affordable houses. </p><p>For this definition metropolitan cities include Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region).</p><p>The government provides tax and other incentives for development of affordable housing projects. </p><p>CREDAI president-elect G. Ram Reddy said the price cap of the affordable housing has not changed for the past eight years. “We are looking to the union budget for urgent policy support, especially with regard to affordable housing,” Reddy said.</p>.Real estate set to be a $10 trillion industry by 2047, says CREDAI report.<p>Meanwhile, addressing a national conclave organised by CREDAI, Union Home Minister Amit Shah said the central government has given a new boost to the real estate sector by reducing goods and services tax (GST) on housing construction materials.</p><p>“Over the past 11 years, many important works have been done for next generation infrastructure. Initiatives like the National Infrastructure Pipeline, Bharatmala, Sagarmala, and Parvatmala have strengthened urban development and infrastructure and prepared a roadmap to take India towards the countries with the best infrastructure in the world," Shah said.</p><p>The Union Home Minister stated that the GST on affordable housing has been reduced from 8% to 1%, on housing projects from 12% to 5%, on cement from 28% to 18%, and on marble, granite, sand, lime, and bricks from 12% to 5%. GST on bamboo flooring has also been reduced from 12% to 5%.</p><p>Overall these new reforms have created the possibility of a 5 to 7% reduction in the cost of constructing a building, Shah said.</p><p>He asked big developers to plan development of low-cost housing projects along with large projects. </p>
<p>New Delhi: The Confederation of Real Estate Developers' Associations of India (CREDAI) on Friday said it has requested the government to increase the price cap of affordable housing to Rs 90 lakh from the current Rs 45 lakh taking into consideration inflation and other cost factors.</p><p>Talking to reporters CREDAI President Shekhar Patel said the industry body was hopeful of a major announcement related to affordable housing in the upcoming budget.</p><p>A residential house/flat of carpet area of upto 90 square metres in non-metropolitan cities/towns and 60 square metres in metropolitan cities having value upto Rs 45 lakh (both for metropolitan and non-metropolitan cities) are categorised as affordable houses. </p><p>For this definition metropolitan cities include Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region).</p><p>The government provides tax and other incentives for development of affordable housing projects. </p><p>CREDAI president-elect G. Ram Reddy said the price cap of the affordable housing has not changed for the past eight years. “We are looking to the union budget for urgent policy support, especially with regard to affordable housing,” Reddy said.</p>.Real estate set to be a $10 trillion industry by 2047, says CREDAI report.<p>Meanwhile, addressing a national conclave organised by CREDAI, Union Home Minister Amit Shah said the central government has given a new boost to the real estate sector by reducing goods and services tax (GST) on housing construction materials.</p><p>“Over the past 11 years, many important works have been done for next generation infrastructure. Initiatives like the National Infrastructure Pipeline, Bharatmala, Sagarmala, and Parvatmala have strengthened urban development and infrastructure and prepared a roadmap to take India towards the countries with the best infrastructure in the world," Shah said.</p><p>The Union Home Minister stated that the GST on affordable housing has been reduced from 8% to 1%, on housing projects from 12% to 5%, on cement from 28% to 18%, and on marble, granite, sand, lime, and bricks from 12% to 5%. GST on bamboo flooring has also been reduced from 12% to 5%.</p><p>Overall these new reforms have created the possibility of a 5 to 7% reduction in the cost of constructing a building, Shah said.</p><p>He asked big developers to plan development of low-cost housing projects along with large projects. </p>