Government Measures to Support Affordable Housing in Gurugram

The Haryana and central government has taken a host of favorable policy measures to boost both the demand and supply of affordable housing in Gurugram. India, like most major emerging economies/ countries, has been witnessing accelerating urbanization. It is a country where affordable housing refers to houses that are affordable to people with below-average household income.

For your information, one of the best developers in town MRG World has some of the most amazing residential and commercial property at the most affordable rates in the town. We will have a look at the different policies that are boosting Affordable Housing Projects in Gurugram. All these policies are listed as follows:

Why there is a need of promoting Affordable Housing projects in Gurugram?

In a country like India, which is going through an economic transition which is characterized by an increase in affordable housing demand. There is a wide difference in demand and availability of the house. 

Limited income and difficulty in access to credit mean that a home will most likely be the most important asset and the biggest investment in his lifetime. It will form the starting point for the long-term welfare of his family. A well-constructed home in a planned development with adequate sanitation, security, privacy.

Not only these all features, but also play areas for children, hang-out places, and uninterrupted water & electricity supply holds significant aspirational value for this customers. Good connectivity to places of work in urban centers and the presence of social infrastructures such as schools and hospitals are also key.

List of Initiatives Taken By Government

1.Licensing Boost

The Haryana government has started taking favorable policy measures to boost both the demand and supply of affordable housing. Providing fresh impetus to licensing of projects is one major initiative of the state government. 

Under the revised Haryana Real Estate Regulatory Authority policy, the Haryana government has doubled the area. These are are benefitted from 15 acres to 30 acres earmarked in each of the 118 sectors in Gurugram. In all, the 3500-acre area was earmarked for the development of affordable housing in Gurgaon.

The new policy will help ramp up licenses for affordable housing and boost the development of projects.

2. Government encouraging Investors

Government provided several incentives to developers including subsidy, tax benefits, and institutional funding. GST council has reduced GST on affordable housing from 8% to 1%. Affordable Housing ceiling also has been increased to 45lakh.

Carpet area for Affordable houses is now defined as 90 sq m in non-metropolitan cities and 60 sq m in metropolitan cities with a ceiling value of Rs 45 lakh in both cases.

3. Efforts From RBI

According to the RBI incentive measures, the cost of affordable residential property should be less than Rs 65 lakh in metro cities and Rs 50 lakh in non-metros. The central bank’s definition is based on the loans given by banks to people for building a house and buying flats. The RBI also gives loans to affordable housing under priority sector lending. RBI allowed banks to issue long-term bonds to finance loans to affordable housing.

4. Deen Dayal Awas Yojna

In recent developments, DDAY has been extended by 75 acres for the densely populated areas. Under which, the developers are allowed to bring plots of sizes 8 to 150Sq Ft and can have independent 4 storeys. DDJAY has been further made attractive by revising the licensing norms. These change in norms have also brought a change in the minimum required area to 5acre and the maximum has been fixed to 15acres. 

Residential Projects in Gurgaon have certainly received a boost from the compensatory measures taken by the Government and its authority. These measures are also encouraging people to get their new home. Overall we can say that affordable housing is one of the best schemes available in the real estate sectors.

Even if the government is taking some measure, they should consider providing necessary subsidies to the developer. This will ensure reduced cost for the construction and hence imply reduced home prices for the buyers and avoid making mistakes while buying your first home.

Synopsis: – The current rise in sales of residential property has come as a big relief. This is due to lower interest rate, lowering home prices and government policies. All these factors are becoming favorable for Affordable flats in Gurugram, Haryana.