According to a recent report by CARE Ratings, the construction of affordable houses across the country under Pradhan Mantri Awas Yojana (PMAY) is more likely to offer 6-8 billion sq ft development opportunity till 2022.
Under PMAY, the Government has announced the development of over 40 million housing units across the country in both urban and rural centres. To promote more private participation and expedite the completion process, the Government has launched several policies and reforms. The announcement of the Credit-Linked Subsidy Scheme (CLSS) is one such scheme offered by the Government to allure more buyers.
Lately, the Housing Ministry has again increased the carpet area of houses for the middle-income group (MIG) under the housing scheme. The Government has increased the carpet area of units eligible for subsidy under credit linked subsidy scheme (CLSS) to 160 sq m or 1,722 sq ft for MIG-I and 200 sq m or 2,153 sq ft for MIG-II.
The report further reads that the Centre is expected to extend financial assistance of 15-20 percent (roughly Rs 1.2 trillion) over the next 3-4 years in affordable housing. The balance amount would be generated from private investments and public-private partnership (PPP) projects.
It has been noted that the residential category witnessed some revival on the back of development of more affordable housing inventory during the second half of 2017-18.