Haryana's affordable housing policy get thumbs up from developers

The Haryana government’s housing policy which permits the state government to sell apartments built by developers at fixed rates, is attracting builders as it offers certainty of sale, according to experts.

Developers have planned launches that will offer properties in desirable areas in Gurugram for Rs 25-35 lakh, say media reports.

The whole ecosystem is driven by a demand-supply matrix. About 50 million people are estimated to be in need of affordable housing. The good infrastructure, affordable prices and socioeconomic dynamics are triggering good response from stakeholders in the realty industry, said an Economic Times report, quoting Vikas Garg of of MRG World.

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The programme provides rebates to developers and allows them to offer commercial space to generate revenue. This along with the very idea of involving developers into the Pradhan Mantri Awas Yojana Programme (PMAY) scheme projects is what is driving the affordable houses scheme in Haryana, a model other states too can emulate.

Gurugram is the hub

“Haryana’s affordable housing development hub is Gurgaon, which has more than 1 lakh units under construction and more than 125 affordable housing projects taking shape,” said Pradeep Aggarwal, founder of Signature Global (India).

“Developers are thus hopping on the current demand-supply mismatch to launch a bunch of projects in this fiscal that will further propel sales up. Because of the viability of the Haryana model and the magnitude of projects in the pipeline, it is the most affordable housing model to date,” ET quoted him.

Under the Haryana Urban Development Authority (HUDA) Affordable Housing Scheme, the price of a 2BHK unit starts at Rs 20 lakh, plus 1 per cent GST. Under PMAY, the government will grant a subsidy of Rs 2.67 lakh.

Govt incentives

Since affordable housing has been granted industry status, the government has been providing several incentives to the industry. As a result, loans are available at reduced interest rates and several consumer-centric approaches have also been implemented to stimulate demand. Subsidy under PMAY is one such incentive.

The fact that the process is online and transparent, buyers feel confident of not being duped. The decision to develop infrastructure further in the form of roads — creating 300 km of new roads and improving 6,000 km of existing roads – will also help in creating more growth corridors that could lead to housing projects in those areas. As of now, Gurugram seems to be the most in demand as compared to other areas of the state.

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