Government has approved the construction of 100,537 more affordable homes under Pradhan Mantri Awas Yojna PMAY (Urban) with an investment of Rs 4,200 crore. With this, the ministry of housing and urban poverty alleviation (HUPA) has so far approved 1,875,389 homes for the economically weaker sections under PMAY(Urban) in 2,151 cities and towns in 34 states and union territories (UTs), with a total investment of Rs 1,00,466 crore.
Around 1,065,058 houses were approved under the beneficiary led construction component of PMAY (Urban), wherein beneficiaries get a central assistance of Rs 1.50 lakh each to undertake new construction or enhancement of existing houses. A total of 587,115 homes have been sanctioned under affordable housing in partnership under which state governments provide land/financial assistance for housing projects for which central assistance of Rs 1.50 lakh each is given per beneficiary.
Other states have been asked to submit proposals by 2018 so that construction could be completed by 2022.
Government, in a bid to give a boost to the real estate sector, had permitted infrastructure status to the affordable housing segment in this year’s budget. Prime Minister Narendra Modi had announced interest subsidy of up to 4 percent on loans taken in the New Year under the Pradhan Mantri Awaas Yojana, and also 33 percent more homes will be built for the poor under this scheme in rural areas.
The CLSS (Credit Linked Subsidy Scheme) announced in a previous budget offered a 6.5% interest subsidy to be credited into the borrower’s account for the first Rs 6 lakh of loan availed for buying a house of 30 and 60 sq m carpet area, under the Pradhan Mantri Awas Yojana (PMAY). The family income of the buyer was to be within Rs 6 lakh. This amounts to a net subsidy of 21% for the applicant. For the first time the government efforts had been stretched to include the Lower Income Group (LIG) segment and not the social sector of the Economically Weaker Sections (EWS) alone.
Now those with upto Rs 12 lakh annual income could avail of the housing subsidy of 4% and those with annual income levels of Rs 18 lakh could avail of subsidy levels of upto 3%. Low interest rates “make it the best time to buy an affordable house in urban India”. This certainly makes a good year to purchase a house.
Therefore, it is a good time to buy now if you don’t own a house.