Theme: Real Estate | Should the concept of affordable housing be redefined? G Hari Babu, President, Naredco explains

In this episode of the State of the Economy podcast, G Hari Babu, President, National Real Estate Development Council (Naredco), speaks to businessline’s Abhishek Law, where he shares valuable insights on the real estate market, focusing on the positive outlook for 2024. He highlights the factors contributing to this optimistic outlook, including the robust Indian economy, stable RBI regulations, and controlled inflation rates. Babu emphasizes that the residential real estate sector, especially affordable housing, will witness this in the coming years.   The discussion delves into demand dynamics, with a focus on the preference for larger apartments over smaller ones. Babu projects a growth rate of 9.2 per cent for the residential real estate sector, driven by an increasing urban population and strong demand. He also addresses the question of potential price increases, pointing out that stable interest rates and already high prices might mitigate significant spikes.  A major part of the conversation revolves around affordable housing. Babu advocates for a redefinition of affordable housing, suggesting that the government should introduce incentives for housing units under ₹35 lakh. He proposes specific measures such as GST reductions, income tax exemptions, and lower interest rates to make affordable housing more accessible and attractive.  Furthermore, the discussion touches upon the need for industry status for small and medium-sized builders. Babu argues that granting industry status will enable these builders to access loans at lower interest rates, fostering better compliance and regulation in the sector. The conversation concludes with insights into the budget and policy recommendations. Babu calls for a proactive approach from the government in addressing the challenges faced by the real estate industry. He emphasises the importance of aligning policies with the needs of the urban population and providing effective solutions to uplift the sector. Listen in. Host: Abhishek Law; Producer: Nabodita Ganguly. ----- About the State of the Economy podcast  India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.