Among the fiscal measures suggested by the chamber are 100 per cent reduction for interest paid on loans for construction of homes by individuals, removal of restrictions for availing exemption from capital gains and deemed export status for real estate developers to boost foreign exchange earnings.

It has also called for a holistic approach to cater to housing needs of the poor since "there is need for providing integrated housing for all sections of the society."

The chamber observed that massive investments in housing for the deprived sections of society would have to come from government subsidies while private developers would be crosssubsidising through housing for the middle and high income groups.

Housing finance loans should be available at nine per cent interest rates, it said, payable over a period of 20-25 years.

The major component of this system should be based on primary mortgages backed by government insurance and guarantee programme. The government, the release said, needs to mobilise resources by tapping internal resources and accessing the overseas market. For augmenting funds for housing, the present 1.5 per cent of incremental deposit from the banking system for housing activities may be raised to 3 %.

PF accretion of Rs 1.4 lakh crore could be invested in securitised debt paper, while foreign investment should be liberally permitted in the real estate sector.