Affordable Housing Went Unaddressed: Naredco

Hyderabad: The Rs 15,000 crore allocated for the completion of one lakh dwelling units will contribute in improving the affordable housing sector, however other significant actions are needed to further uplift this sector, says Naredco (National Real Estate Development Council).

The industry body has lauded SWAMIH Fund 2.0 announced during the Union Budget. An additional Rs 15,000 crore has been earmarked for the completion of the housing projects that were previously hauled up due to financial distress. Under the current SWAMIH Fund scheme, 50,000 dwelling units of stressed projects have been completed, and an additional 40,000 units are set to be finished this year.

“SWAMIH Fund 2.0 directly benefits middle-class families, many of whom are balancing EMI payments on home loans while also paying rent for alternative accommodation. However, the Budget could have addressed the outdated definition of affordable housing which has created barriers for many potential homeowners,” National President of Naredco, G Hari Babu said.

According to him the current housing cap rate has to be revised, which has been stagnant for nearly eight years. This makes delivering affordable homes within the set limits difficult, he added.

Dr Niranjan Hiranandani, Chairman, Hiranandani Group, termed the Finance Minister’s announcement of Urban Challenge Fund of Rs 1 lakh crore as the highlight.

“The fund aims to address land and development obstacles, foster robust social infrastructure in key urban centers, and drive infrastructure development across urban corridors. However, it is worth noting that the budget has not taken significant action towards uplifting affordable housing, a segment crucial for inclusive growth and economic stability,” the Chairman pointed out.