Change in carpet area rule may increase housing demand in Karnataka

affordable-housingh-min-470x400 - CopyBy Accommodation Times Bureau


Under Pradhan Mantri Awas Yojana (urban), the centre aims to provide affordable houses to all by 2022. According to a recent move by the centre to increase the carpet area for residences eligible for interest subsidy under the Credit-Linked Subsidy Scheme (CLSS) has come as a benefit for the affordable housing sector in Karnataka. However, this scheme will applicable to the Middle Income Group (MIG).

The carpet area of houses has been raised from 968 sq ft to 1,300 sq ft under the MIG-I category and 1,200 sq ft to 1,615 sq ft under MIG-II segment.

According to Adarsh Narahari, secretary, Credai, Bengaluru, “The move will provide an impetus for both home buyers and developers. Under the MIG-I category, beneficiaries whose annual income is between Rs 6 lakh and Rs12 lakh can avail a four percent interest subsidy on a loan of up to Rs 9 lakh. For the MIG-II category, beneficiaries with an annual income of Rs 12 lakh to Rs 18 lakh get an interest subsidy of three percent on a loan of up to Rs12 lakh. Since the benefit is provided upfront, the down payment reduces. Therefore, more customers will be eligible to buy homes.”

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