Following steep cut of 7% in GST rate for affordable homes, effective from April 1, the proposed liberalization of home cost norms under Pradhan Mantri Awas Yojana( PMAY) may well further provide impetus to affordable housing.
According to present eligibility norms for availing home loan subsidy under PMAY, a house/apartment should have carpet area of up to 90 sq mt in non- metropolitan cities and up to 60 sq mt in metro cities of Delhi- NCR( Delhi, Gurugram, Noida, Greater Noida, Ghaziabad Faridabad), Mumbai Metropolitan Area (MMR)Bengaluru, Chennai, Hyderabad, kolkata . The eligibility criteria for metro and non- metro cities, with regard to the home cost is up to 45 lakh. Both the conditions are required to be fulfilled to avail the interest subsidy benefit of up to 2.67 lakh under PMAY.
Says Pradeep Aggarwal, Founder & Chairman, Signature Global, ” The concept of uniform home size and home price eligibility criteria.There is a need to redefine affordable housing from the point of home price eligibility in metro cities like Mumbai and its surrounding areas. The home price limit here as also suggested by Maharashtra government needs to be raised to 60-70 lakh, in order to make it realistic. This policy move will help provide further boost to affordable housing”.