CREDAI (Confederation of Real Estate Developers’ Associations of India) has announced to build over one lakh affordable houses in Maharashtra, spread over Pune, Mumbai, Nashik, Nagpur, Satara and Solapur. CREDAI has taken the first private investment initiative of such kind.
Mr. Satish Magar, the president-elect of Credai India said “The CREDAI has signed a Memorandum of Understanding (MoU) with the Government of India to build affordable houses and the MoU was handed over to M Venkaiah Naidu on Sunday. About 45,000 affordable flats measuring 60sqm will be ready in Pune in the next couple of years. Construction could be started immediately. He also said that collected data across India where developers were building affordable houses. “Based on these projects, we shall take up affordable housing with the Government of India,” he said.
Under this initiative, over two lakhs affordable houses will be built across India under this project, out of which Maharashtra will benefit the most. The approved project under this scheme will be executed with assistance from the central and state governments.
The cost of construction of these affordable houses will be in the range of Rs15 lakh to Rs30 lakh with average cost of construction coming to Rs18 lakh per house. As many as 352 housing projects would be executed in 53 cities of 17 states with an investment of over Rs 38,000 crore to build over two lakh houses.
According to a study on housing conducted by NGO Mashal for the Pune Municipal Corporation (PMC) it stated the lack of affordable houses in the city. It highlighted that there was a shortfall of 2.5 to 3 lakh affordable housing units, which was likely to double in the next few years.
The government has time and again rolled out various schemes to boost slowdown-hit real estate sector. The government had announced a scheme for profit-linked income tax exemption for promoters of affordable housing scheme in the last year’s budget. To make it more attractive, the government has proposed that instead of built-up area of 30 and 60sqm, the carpet area of 30 and 60sqm would be counted.
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