Positive Announcement: Government-funded housing will be converted to affordable rental housing projects

Finance Minister Nirmala Sitharaman has released the second tranche of the ₹20 lakh crore economic package today which is a day after announcing a set of 15 relief measures related to MSMEs, NBFCs, the real estate sector, etc.

The government has extended CLSS by one year till March 2021 for the lower strung of the middle class earning ₹6-18 lakh annual income which will definitely benefit the affordable housing the segment, which is a key demand driver within the real estate sector. Also, government to launch a scheme for affordable rental housing for migrant workers and urban poor to provide ease of living by converting government funded housing in cities into Affordable Rental Housing Complexes (ARHC) under PPP mode through the concessionaire.

Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, ASSOCHAM – National Council on Real estate, Housing & Urban Development said, “The CLSS extension announced by the government till March 2021 will benefit a lot of lower and middle class families under Pradhan Mantri Awaas Yojna. This scheme has already benefitted more than 3 lakhs people. With the latest announcement of Rs 70,000 cr are expected to enroll around 2.5 lakh families. This will definitely increase the demand and hence good news for affordable segment. Present government has always shown it’s intention to provide housing for all. In fact, the second announcement was also related to the weaker section of the society by entering into PPP to build rental housing complexes to solve the issues for migrant workers and Urban Poor. Both the steps will provide benefit to the allied industries too.

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