NEW DELHI: In a move that will benefit those looking to buy mid-range houses in metros, the government has decided to expand the scope of ‘affordable housing’ so that more buyers in big cities can avail of the subsidy being offered for such houses.
According to sources, the government is considering tweaking the definition of affordable housing by including housing projects costing up to Rs 50-55 lakh in metros.
Currently, to avail credit subsidy benefits for affordable housing, a home must be priced at less than Rs 45 lakh and not exceed 60 sq metre carpet area or about 650 sq ft built-up area.
The proposed move is also expected to revive the real estate sector, which is sitting on hundreds of thousands of unsold housing units in major cities.
According to a report by ANAROCK Property Consultants, there were 1.82 lakh unsold housing units in the Delhi-NCR region alone in the second quarter of this calendar year.
Of this, Gurgaon accounted for 56,550 unsold houses worth Rs 80,570 crore — 31 per cent share of the whole region.
Last week, Finance Minister Nirmala Sitharaman had said the government was working on a solution to get the stalled housing projects completed.
On their part, realty developers wanted the government to relax norms by extending the subsidy benefit to housing units costing up to Rs 60 lakh.
The builders had also asked the government to address the liquidity problem and create a ‘stress fund’ for completion of stalled projects.
The announcement changing the definition of affordable housing is subject to Cabinet approval.
A senior finance ministry official told The New Indian Express that the notification is expected this month or early September.
Bonanza for home buyers on the cards?
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