The Pradhan Mantri Awas Yojana (PMAY), the flagship affordable housing scheme of the Government, is set to get a massive boost in the near future. The new NDA Government has announced construction of 3 crore new units under this scheme soon after assuming office. The higher focus on urban and rural housing will boost living standards for several citizens, while also creating newer job opportunities according to industry players.
The scheme has been extended with a bigger target and can potentially boost the affordable housing segment in the next five years. Several experts feel that it will encourage more developers to prioritize these projects, while enhancing overall housing supply throughout the country. The expansion of carpet area eligibility will also tackle several challenges faced previously by homebuyers in the mid-range and affordable categories.
The Principal Partner at Square Yards, Rajat Likhyani, states that the PMAY has been a vital initiative for tackling housing shortage throughout both rural and urban regions. He also feels that the scheme provides vital credit-linked subsidies which help eligible buyers and households to attain property ownership while also accessing basic infrastructure and amenities to improve their living standards. He also states how the Indian Government’s recent move to build 3 crore urban and rural houses is a positive step. It will further encourage homeownership among low-income groups and economically weaker sections according to him.
Other experts feel that the move will boost economic growth, while enabling the achievement of the Housing for All vision. It will also boost the Indian real estate sector, especially in the affordable housing segment. The PMAY was launched in 2016 by Prime Minister Narendra Modi and has already ensured the delivery of close to 2.61 crore affordable homes for lower-income families and households. Yet, affordable housing has been affected since the COVID-19 pandemic, with its share steadily coming down in the tally of total homes constructed in the country (from 2019 onwards). 44% of homes built in Q1 2019 were affordable units, while this came down to 18% in Q1, 2024. Some experts also state how the affordable housing segment of the Government had not done that well in the last term. The new move addresses this downward spiral, particularly from the pandemic onwards. They also feel that the overall revival of the category still depends on more incentives for real estate developers and buyers.
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Published Date: 10 June, 2024
