Low Cost Housing Projects initiated in Pune

Over 100 acres of land owned by the civic body and semi-government agencies in city limits might be open for affordable housing projects with the central government set to come out with new rules to boost the realty sector.

According to the Union urban development department, new guidelines will be issued soon to enable private investment in affordable housing even on private lands of the civic body or semi-government agencies. It will open the gates for private players under affordable housing in partnership component of the Pradhan Mantri Awas Yojana (urban), under which only public sector partnership is allowed so far.

Affordable houses costing Rs15-20 lakh are in demand in the city but no builder is building such accommodations as of now. The demand for such houses is 75% and the supply is just about 5% in the market. The opening of semi-government land within the city for construction will help control prices as no separate infrastructure like roads and sewage lines will have to be created in the city.

The state government officials are uncertain about the execution of the government’s new plans. There are lot of issues involved in proving ownership of government land in Pune, where land prices are skyrocketing.

Earlier, the government had announced a scheme for profit-linked income tax exemption for promoters of affordable housing scheme in the last year’s budget. To make it more attractive, the government has proposed that instead of built-up area of 30 and 60 sqm, the carpet area of 30 and 60 sqm would be counted. According this plan, Credai claimed, about 45,000 affordable flats would be available in the city in the next couple of years.

SOURCE – CONFEDERATION OF REAL ESTATE DEVELOPERS’ ASSOCIATIONS OF INDIA (CREDAI)

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