Expressing concern over rising prices of steel and cement, real estate body Naredco has made out a case for further rationalization of taxes, focus on affordable housing and need for innovative liquidity measures.

Naredco on Thursday urged the government to hike deduction on home loan interest to Rs 5 lakh from Rs 2 lakh limit at present and reintroduce subvention scheme in the upcoming Budget to boost sales of residential properties and create housing revolution. The association also sought incentives for rental housing and more stress funds to help complete distressed and stalled projects.

"Last three years have been extremely difficult for the real estate industry. The reforms like demonetization and realty law RERA as well as the liquidity challenges in the NBFCs post-IL&FS crisis hit demand. The industry went through tough times," Naredco National President Niranjan Hiranandani told reporters through a video conference. He said the central government and some states like Maharashtra have taken various decisions to boost housing demand, but more needs to be done. Listing out the association's key pre-Budget demand, the Naredco President said there is a need to rationalise personal taxes as it for corporates.

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