REACTIONS: Union Cabinet Approves Increased Carpet Area for Affordable Housing

The recent decision of the Union Cabinet to increase the carpet area limit of affordable housing for middle income group (MIG) from 90 Sq mtr to 120 sq mtr and from 110 sq mtr to 150 sq mtr and extending the Income tax provisions to cover the projects sanctioned on or before 31st March 2019 is a welcome move. Please refer below for the quotes of few real estate stalwarts on this move by the cabinet.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz
This decision will not only help clearing up of the unsold stock under the affordable housing segment but also witness the new projects involving the revised unit sizes. With the majority of home buyers in the country from the MIG segment and looking for bigger options than those that were available before, this decision will certainly help in meeting the aspirations of this segment of buyers. This step is a great filler for the people who were just not able to avail the benefits of PMAY to purchase their dream house for the lack of choice in unit sizes.

Pradeep Aggarwal, Co-Founder & Chairman, Signature Global
Consumer Sentiments for affordable housing has been on the rise ever since the Union Budget 2017 – 18 which has allowed tax benefits, both to the developers and consumers along with easier access to loans at reduced borrowing rates. This was further boosted by the infrastructure status which was accorded to the affordable housing segment which has meant boosted investor sentiments towards the segment. With the renewed brackets of carpet area under the PMAY, it will even give affordable housing developers more options to develop and attract further segment of buyers.

Manoj Gaur, Vice President CREDAI-National & MD, Gaurs Group
The major chunk of the benefits which will be available because of the changed carpet area will be for the MIG category of buyers. The government has been very proactive towards its mission of Housing for All by 2022 which has been very evident from the reforms which it has been introducing from time to time. Also, with projects registering under RERA and having strict guidelines on their completion, buyers will be more than willing to invest in projects which will offer affordable housing units under the revised carpet areas.

Gaurav Gupta, General Secretary CREDAI – Ghaziabad & Director, SG Estates
The proposed changes in the carpet area of affordable housing projects will give liberty to several developers in the affordable housing segment to develop bigger units and attract more customers. It will also mean developers witnessing higher demands for ready to move in affordable housing units falling under these brackets. Also, this will mean the facilitation of higher investments in affordable housing segment which has been accepted very well in the market, both by investors and end users.

Abhishek Bansal, Executive Director, Pacific Group
The sector was witnessing fallout of incomplete projects and loss of buyer and investor confidence but that is a thing of the past now as the government has been proactively working out ways to develop on these fronts. The average middle class in smaller towns will be able to afford bigger and better quality homes than before and at the same time avail the benefits of CLSS under the PMAY.