Independence Day: Significant Policy Changes To Support The Real Estate Revival
Policy Changes To Support The Real Estate Revival- The real estate sector has managed to recover after two challenging years of the epidemic thanks to consumers finally accepting the “new normal” and the rising homebuying trend. Let’s take a look at some encouraging plans the government has announced to resurrect the Indian real estate industry as the nation commemorates its 75th anniversary of independence.
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The COVID-19 caseload has decreased, and States are still attempting to operate fully. But the Indian real estate market has gradually started to move in the direction of recovery. As individuals begin to understand the value of homeownership. New project launches and the increased demand for cheap and mid-segment apartments are supporting the industry. The job market’s revival is one element, but other recently announced government initiatives have also been encouraging, spurring real estate growth. Thus, on this Independence Day, this blog examines some significant policy reforms that supported the real estate industry. During the historically COVID times and will continue to do so in the next months.
Stamp duty rates are being reduce, and the guidance value
Homebuyers are discouraged from purchasing a home because of the huge increases in property registration & stamp duty rates. In order to increase the housing sales that have been negatively impacted by the COVID upheaval, several States, including West Bengal & Karnataka, have announced a drop in their stamp duty rates and guidance values. The West Bengal government extended the deadline for a 2 percent stamp duty rebate and a 10 percent circle rate waiver to September 30, 2022, in their Budget 2022–2023 proposal. The recommendation value was also decrease by 10% by the Karnataka government. The Maharashtra government previously provided a stamp duty relief of up to three percent from September 2020 to March 2021. The government currently gives female homebuyers a 1% stamp duty rebate.
Building more affordable housing
The government declare that an extra 80 lakh affordable homes would be create within a year. Under the Pradhan Mantri Awas Yojana (PMAY). Even though tax benefits for first-time homebuyers of affordable housing units were remove after March 31, 2022. The government allocated Rs 48,000 in the Union Budget 2022–23. To advance the goal of “Housing for All” and finish the country’s unfinished projects. The action is probably going to increase interest in schemes for affordable housing.
SWAMIH Fund
On November 6, 2021, the Central Government established the Special Window for Completion of Construction of Affordable & Mid-Income Housing Projects (SWAMIH) Fund in an effort to complete the country’s incomplete projects and assist the distressed homebuyers. According to the SEBI (Alternative Investment Funds) Regulations, 2012, it is a Category-2 Alternative Investment Fund (AIF) registers with SEBI. With the purpose of providing debt funding to finish stalled projects. With funds authorised totaling Rs 24,151 crore, the fund will invest in over 250 projects. Helping over 1.5 lakh homebuyers across the country.
Affordable Rental Housing Complexes (ARHC) Scheme
The Affordable Rental Housing Complexes Scheme (ARHC) was introduce by the Ministry of Housing and Urban Affairs (MoHUA) in June 2020 for the nation’s urban migrants. The programme has been launched as a part of the PMAY. Migrant workers & the urban poor will be granted 25 years of rent-free access to all vacant residences in residential complexes supported by the government. The government has teamed up with Indian public & private entities to build these amenities. It will also give incentives including a higher Floor Space Index (FSI), tax reductions, and low-interest financing. The said programme is anticipate to assist close to 3.5 lakh people.
2021 Model Tenancy Act
After years of planning and drafting, the Model Tenancy Act, 2021, which aims to make rent rules more equitable for landlords and tenants. Has finally received approval from the Union government. A similar Act was requires to simplify the rental procedure and meet the goal of building 20 million affordable homes for urban dwellers by 2022. In addition to giving the parties a prompt and open resolution of conflicts, the law now seeks to strike a balance between the interests of landowners & tenants.
The growth of the rental housing market in India had been constrained by rent control rules. Which also discouraged homeowners from renting out their vacant properties. Rent rates have also risen over time as a result of the lack of rental housing. It was urgently necessary to standardize the outdated rental legislation so that the rental housing market could realize its full potential. The Model Tenancy Act, 2021 has boosted industry investment, enhanced entrepreneurial opportunities. And aided in the creation of inventive space-sharing options for house searchers.
The pandemic presented a difficult challenge for the sector with the installation of several nationwide lockdowns. Despite the real estate market’s recent fast growth. However, the property market has started to show signs of recovery as a result of ongoing support from the federal and state governments.
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