Naredco, a body representing real estate companies, has urged the central government to increase the interest deduction limit on home loans in the upcoming budget. They have demanded that the current limit of Rs 2 lakh should be raised to Rs 5 lakh, which would provide significant relief to homebuyers. This move is also expected to boost the real estate sector and encourage more people to purchase homes.
Demand for Increased Interest Deduction on Home Loans
On Thursday, Naredco formally requested the government to revise the current interest deduction on housing loans from Rs 2 lakh to Rs 5 lakh in the upcoming budget. This change could make homeownership more accessible for the common person, as it would allow for higher tax savings. The real estate sector believes that this increase would boost buyer confidence and stimulate demand in the market.
Real Estate Sector Seeks Industry Status
The organization has also advocated for granting ‘industry status’ to the real estate sector. Naredco argues that real estate plays a crucial role in the Indian economy, and receiving industry status would provide the sector with better access to credit, investment, and support through government policies. This would lead to more organized development within the sector and create additional employment opportunities.
Redefining Affordable Housing Limits
Naredco has further called for a revision in the definition of affordable housing. They have demanded that homes priced up to Rs 90 lakh should now be considered affordable housing, an increase from the current limit of Rs 45 lakh. This proposed change would bring more homes in metropolitan and larger cities under the affordable housing category, enabling a greater number of people to benefit from government schemes.
Ensuring Housing for All
Naredco Chairman Niranjan Hiranandani highlighted that while the central government has taken several measures to support the real estate sector, more work is needed in the affordable housing segment. He stated, “We must ensure housing for all. Housing should be given the same importance as other infrastructure sectors.”
