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Joint Development Agreements (JDAs) are vital in the affordable housing sector, gaining traction among builders and consumers due to tax benefits and affordability. A JDA is a contract between landowners and builders, allowing developers to construct properties on the land without purchasing it outright. In return, landowners receive constructed flats. This system functions like a barter, aligning interests while leveraging taxation amendments to enhance housing availability. Understanding the components, benefits, and tax implications of JDAs is crucial, especially with recent changes affecting their taxation, which has sparked interest among stakeholders in the real estate market.
