‘Housing for All’ is one of the most talked about missions brought forward by Narendra Modi besides the Smart City projects. The mission is aimed at providing affordable homes to the urban poor and slum dwellers at low interest rates so that everyone can have a roof above their head. The mission on low-cost affordable housing for the project will be harboured by the National Housing Bank (NHB). To attract investment in the housing sector, the government has decided to provide tax incentives on certain projects.
There are a number of institutional players out there and the motto is to attract them to make investments in rental housing. The plan is expected to be presented at the next union budget. Real estate is one of the fastest developing industries of India. Housing sector not only improves the scenario and urban skyline of the cities but also contributes a whole lot to the other industries. The main sector that benefits from housing is the construction industry which in turn promotes the other sectors that provide critical inputs to the construction industry such as cement, steel and other industries. Several new job opportunities are also created.
A draft policy has been created by the local bodies which will be reviewed by the tax department to ascertain the amount of tax incentives on rental housing that can be provided to the investors. The draft suggests tax incentives for the homeowners who let out their property on rent and to the mass renting societies. The policy focuses on building public private partnerships (PPP) to promote investment in rental housing in India and this will act as a catalyst towards the overall achievement of Housing for All by 2022.
Maharashtra, West Bengal and Uttar Pradesh are expected to be the three major cities which will be affected by the policy. Though the cement and steel industry in detrimental in supporting the Housing for All scheme, it may also stand as an obstacle in completing the projects by 2022 as the government is doubtful whether the private industries will be able to match the supply with increased demand. Construction industry is the largest employment generator. With every boost to the Housing for All programme, an impetus is laid on the construction and allied industries.
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Article Source: Economics Times