Carpet Area For Houses Under PMAY-Urban Increased
The Centre is going to increase the carpet area of homes meant for the middle-income group (MIG) category under the Pradhan Mantri Awas Yojana-Urban (PMAY-U), a move hailed by real estate developers.
Under the MIG-I category, the carpet area of the houses has been enhanced from 90 square metre (sqmt) to 120 sqmt; under the MIG-II segment, it has been increased to 150 sqmt from the current 110 sqmt.
For the MIG-I category, a four-per cent interest subsidy is provided to the beneficiaries with an annual income of Rs 6-12 lakh on a loan of up to Rs 9 lakh. Under the MIG-II category, the beneficiaries with an annual income of Rs 12-18 lakh get a three-per cent interest subsidy on a loan of up to Rs 12 lakh.
Housing Minister Hardeep Singh Puri said the move would attract more people to buy houses under the scheme. An official said many people were not opting to buy houses under the scheme as the previous carpet area did not seem attractive to them. The exchequer will have to bear an additional burden of Rs 1,000-1,200 crore to fund the move.
Realtors hail move
National Real Estate Development Council (NAREDCO) Chairman Rajeev Talwar and President Niranjan Hiranandani said the decision would help meet the aspiration of millions of homebuyers in the MIG category.
The decision, besides helping in clearing the unsold stock, would also encourage the developers to launch new projects, which in turn would boost the economy, GDP growth and employment opportunities, they said, adding that the move would now bring the entire demand for affordable housing under the interest subvention scheme.
Confederation of Real Estate Developers' Associations of India (CREDAI) President Jaxay Shah said that the move will give the help the government's meet its Housing for All by 2022 target.
"The average middle-class in smaller towns and cities will now be able to afford bigger and better quality homes."
Under the PMAY-U, the Centre aims to provide houses to all the urban poor by 2022. Currently, the shortage of houses is pegged at over 10 million in the urban areas.
The housing and urban affairs ministry is implementing the Credit-Linked Subsidy Scheme for the Middle-Income Group (CLSS for MIG) under the PMAY-U since January 1 this year. The scheme is currently effective till March 31, 2019.