Along with restriction on the size of housing units, a restriction on the value of the apartment and eligibility of buyers based on income will also serve the cause. The scheme has to be redesigned in a manner that makes it user friendly.

To pursue affordable housing, the industry has proposed integrated township projects with infrastructure status. With this status, these projects will have a better access to funds.

Rajesh Vardhan, managing director, Vardhman group says there has been an increase in cost of living and the minimum tax exemption should be raised to Rs 2 lakh. Similarly, exemption of interest on loans should be raised from Rs 1.5 lakh to Rs 2.5 lakh. This will help increase the construction of flats less than 1,000 sq. ft built up area. Section 80 IB should be reintroduced for a term of another five years.

Income tax exemption for builders is also high on the wish list. Says Pradeep Jain, chairman of the Parsvnath Group: ''I expect the finance minister to extend the date of tax concessions under Section 80 IB of the Income Tax Act." Other demands of the realty sector include higher FSI and industry status.

External commercial borrowing (ECB) is allowed for development of townships and a further extension of this will help increase the housing stock. The cost of borrowed funds for developers is high and the availability of long term loan is also not easy. Analysts say it will serve as a great incentive to increase the access to overseas funds at lower cost. They have also said that the deadline for ECB in development of townships be extended to December 31.

The sector has demanded that stamp duty rates on property transactions be brought down and the government should make them uniform across states.