Gurgaon is all set to see a boost in housing demand after the changes in the Haryana Affordable Housing Policy. The policy comes under the Urban Areas Act 1975. Recent amendments in it approved by the Haryana cabinet are the talk of the town. From increased project area limit to parking provisions, the amendments are in favour of people looking to invest in affordable housing.
With the government’s Housing for All mission nearing its deadline, housing policies have taken a centre stage. In line with this, the government of Haryana has made certain necessary changes in the Affordable Housing Policy. Since, Gurgaon is the largest residential real estate hub of Haryana, the amendments in the policy will have a significant impact on the city. What interests the developers is the increased project area limit in the Haryana Affordable Housing Policy. Hence, we can expect a surge in affordable housing developments in the near future. Also, the addition of parking provisions will push investments in affordable housing.
Let’s delve a little deeper into these amendments.
The addition of parking provisions in the Affordable Housing Policy
As per the latest change in the Affordable Housing Policy, 0.5 Equivalent Car Space (ECS) for every unit is non-chargeable and mandatory. This means that the home buyer gets an added perk without any extra cost. The affordable housing projects in Gurgaon lacked individual parking space, as the DDA flats of the 70s and 80s. Gurgaon as a metropolitan city has become a hub of business and residential spaces. Every day people search for a secure space from where their car does not get towed. Employees returning from offices waste several minutes finding the right parking space. Also, mostly the traffic violations are a result of illegal parking. Lack of parking facility was one of the key reasons why genuine home buyers were wary of investing in these affordable projects. With this amendment in place, demand for these projects is expected to rise.
Increased Project Area Limit in the Affordable Housing Policy
As per the detailed notification issued by the Haryana Cabinet, the minimum and maximum areas for affordable housing projects has been changed to 4 acres and 30 acres respectively. This will bring in more projects under the ambit of “affordable housing” which will further drive investment in the sector.
Moreover, with more area available for development, a greater number of housing units can now be developed. This in turn will satisfy the objective of housing for all. Further, the amendment in the Haryana Affordable Housing Policy is expected to attract more developers towards investing in affordable housing projects.
Expansion of commercial component in the Policy
An increase in the commercial component is a plus for both developers and home buyers. The commercial area is hiked from 4% to 8% of the total planned area. For developers struggling with scarce profit margins, these changes are a base for higher profit margins. Also, having a commercial component inside the project premises has become a necessity today due to COVID. Thus, the modification in the Haryana Affordable Housing Policy is a win-win situation for both homebuyers and developers.
In a nutshell, ‘housing for all’ was a highlight in the current year’s budget, and the amendments in affordable housing policy are an upshot of that. Experts believe that these amendments will act as an incentive for homebuyers who have been on the fence due to the unprecedented events of the past year.
