With Prime Minister Narendra Modi getting a second term after a tremendous victory, the affordable housing segment is expected to continue to get the much-needed boost. Modi’s “Housing for all by 2022” or Pradhan Mantri Awas Yojana wishes to provide affordable housing by motivating developers and homebuyers with schemes and benefits.It focuses on providing affordable housing to the urban poor with a target of building 20 million affordable houses by 31 March 2022. Backed by public support on his various policies, which led to Modi government’s second term, affordable housing segment is expected to witness a refreshed approach that will provide the right ecosystem for the affordable and mid-income housing segment to grow.
The Ministry of Rural Development has completed construction of 38.22 lakh houses against the target of 51 lakh houses for 2016-18, which means that the 75% of the initial target is completed. Over the five years affordable and mid-income housing has seen consistent growth in new launches and absorption of housing units and expects to see more. Various concessional schemes of the government, like interest subvention under the Credit Linked Subsidy Scheme (CLSS) and concessions on GST, among others, are available for further growth. The biggest impact on real estate, which happened in Modi 1.0, was the Real Estate (Regulation and Development) Act, 2016 (RERA). But even the almighty RERA has not been implemented in letter and spirit in several states in the country.
“The various sector connected and benefited from these schemes expects them to continue in the second term of the Modi Government. The sector has a lot of expectations from the Modi Government to bring more growth in the realty sector and provide the right ecosystem for the affordable and mid-income housing segment to grow”, said Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd.