Incentives for realty sector, boost to affordable housing

Tribune News Service

Chandigarh, January 7

To boost affordable housing, the state government has amended its Affordable Housing Policy, 2013, by doling out major sops to the recession-hit realty sector.

Under the new policy, the builders have been extended incentives concerning project area norms, commercial component and parking area norms.

These incentives are intended to draw the big real estate players into the affordable housing sector, which is set to become popular in the post-Covid scenario.

While the minimum area norms for setting up the housing project have been reduced from five to four acres, the maximum area norms have been extended from 10 to 30 acres. The commercial component has been increased from 4 per cent to 8 per cent of the net planned area.

A notification issued by AK Singh, Principal Secretary, Town and Country Planning Department, said the builders would be able to provide 0.5 equivalent car space (ECS) to the allottees on chargeable basis (not more than 5 per cent of the flat cost) under the new policy.

The allottees already get 0.5 ECS free under the existing policy, which would mean that the car parking problems of the allottees would be taken care of under the new policy.

Meanwhile, projects under construction would be able to avail these benefits with some riders.

BK Sanghi, a real estate expert, said the new policy would make the housing in the affordable segment more affordable as more commercial component in the projects would go a long way in keeping the prices competitive.

“The provision of car parking for all allottees will draw more investors and end-users into the affordable housing segment, boosting sales,” he added.

BOX

Policy implications

Relaxed area norms to draw big realtors into the affordable housing segment

More commercial component to keep prices of apartments competitive

Individual car parking to boost sales in housing projects