Government to Introduce Real Estate Regulatory Bill
In order to boost the demand in the real estate sector and help the poor section in purchasing homes, the government has announced new policies that will offer an interest subsidy on housing loans.
The Government awaits the approval of the cabinet for its Real Estate Development and Regulation Bill that will give an interest subsidy and help poorer people to buy homes. The Bill is expected to receive approval and be passed by the coming Budget session which for all this while has merely remained a proposed law. Details about this plan were revealed by Housing and Urban Poverty Alleviation Minister Venkaiah Naidu when he was addressing the realtors’ body CREDAI conclave.
The real estate sector has already been impacted with a huge slowdown in the demand rates and proportionately sky rocketing property rates as well as a high interest rate regime.
Government Plans:
- Naidu also added in his statement, the government’s objective to offer an interest subvention scheme for the housing sector for the economically weaker section and lower income group people and partially to the lower middle class.
- The government plans on moving towards the reduction of interest rates, which at present is in a difficult state to manage.
- Naidu claims to have gone through the details of the bill personally having taken into consideration, the views of various stakeholders in the real estate sector.
- The Regulatory Bill is now in its final stage of consultation. It is believed that the bill will be a people friendly as well as construction friendly one.
- The state government under this act will gain freedom to frame its own rules once it’s passed by the Parliament.
Estimates:
According to calculations, the government has estimated the housing shortage to be at the rate of 18.78 million units in the year 2012. 95 per cent out of these 18.75 million units were reportedly in the EWS/LIG category.
This Real Estate Regulatory Bill was introduced in the Rajya Sabha in August 2013 and has been aimed at protecting home buyers from unscrupulous developers. The Standing Committee submitted is report on the same, in February 2014.
Source: NDTV Profit
Housing loans, housing loans in India, individual housing loans, interest subsidy on housing loans, Real estate development
