Rising urbanisation and an expanding middle class have led to proliferation of slums and have surged the demands for affordable housing. Unaffordable land management policies remain prevalent along with Floor Space Index (FSI) ceilings in different cities. Floor Area Ratio/ FSI ratios have led to horizontal expansion and need to be doubled to bring about a vertical expansion.The issue of titling and the lack of property rights information add to the problem.Under Indian law, registration of sale of land is compulsory but the registration authority is not required to verify from the seller either the history or the ownership of the land.This weakens buyer protection.Regulatory approvals remain a complex process for developers.Gathering initial funding for any real state project is a daunting task given the bank's reluctance to advance loans to this sector.
The Modi government has promised Housing for all by 2022.
A land pooling policy may be helpful in increasing affordability.Implementation of the IT-enabled "single-window approval system" must be expedited.Granting infrastructure status to real estate, especially to affordable housing would provide tax incentives.Stamp duties should be rationalised. Introduction of Benami Transactions prohibition and the Black Money Bill would curb the flow of black money into real estate, improving the overall affordability of the sector.
The Modi government has promised Housing for all by 2022.
A land pooling policy may be helpful in increasing affordability.Implementation of the IT-enabled "single-window approval system" must be expedited.Granting infrastructure status to real estate, especially to affordable housing would provide tax incentives.Stamp duties should be rationalised. Introduction of Benami Transactions prohibition and the Black Money Bill would curb the flow of black money into real estate, improving the overall affordability of the sector.
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