Realty Sector in Need of Affordable Housing Policy
The ne
w BJP-led government has been talking about ‘home for all by the year 2022’. Usually, the growth in the housing sector is seen as growth in a country’s economy. But in India, housing hasn’t received the status it deserves. The ministers and other officials never consult the housing industry association before the budget, nor do they involve them in discussions pertaining to the health of the country’s economy.
Banks need to charge an interest rate of under 7% to promote property developers and those who are interested in buying homes. If an industry status is granted to the realty sector, more and more real estate projects will sprout at nominal interest rates.
The present approval process for clearance is very long and can take up to 2 years. The Single Window Clearance needs to be regulated because the delay in approval costs customers an additional 25% to 40% of spending. The existing Floor Space Index (FSI) rules were made long ago, and it’s of great importance that changes be made to the Development Control Rules. A higher FSI rate will guarantee the stabilisation of real estate prices in the country and aid in the desired economic growth.
Source: The New Indian Express
Floor Space Index, Floor space index rules, single window clearance, Single window clearance for housing projects in Mumbai, stabilisation of real estate
