Reserve 35% land for affordable housing
Thirty five per cent of land area – instead of the current 15% – in all new housing projects should be reserved for affordable housing, according to Assocham. In analysis on Affordable Housing, the chamber has also urged that for these projects interest rates should not exceed 8% for a fixed period of 15 years.
The present National Housing Policy with reservation of 15% is hardly executed thus affecting provision of affordable housing, adds the Assocham findings. Affordable housing for lower middle class should be within the range, not exceeding Rs.6-7 lakh and that of middle class, the affordable housing be within the cost of Rs.15 lakh, Assocham said.
In this view, the chamber has urged the centre to issue a directive to all states and UTs to allocate lands to all new housing project developers in state owned and private sector to exclusively construct housing for them for which the land costs should be one fourth of the market price. This way the affordable housing could be possible as the subsidized land costs can offset the higher input costs for construction material.