Increase in Carpet Area to impact NCR, MMR and Bengaluru

By Dr. Niranjan Hiranandani, CMD, Hiranandani Communities

MUMBAI

The Pradhan Mantri Awas Yojana (PMAY) is an initiative through which the Indian Government aims to provide ‘Housing for All by 2022’. The Government has come up with various incentives which work as ‘sweeteners’ for the home seeker, the latest being increase in carpet area of houses eligible for interest subsidy under the Credit-Linked Subsidy Scheme (CLSS) for the middle-income group (MIG) beneficiaries.

“The announcement, effectively, creates a 33 percent increase in carpet area eligible for a subsidy in the Middle-Income Group (MIG) segment,” said Dr. Niranjan Hiranandani, Co-Founder & MD – Hiranandani Group and National President – NAREDCO. He added that NAREDCO had made a representation to the Ministry of Housing and Urban Affairs urging removal of the cap on carpet area of 120 sq. mtr. and 150 sq. mtr. for MIG 1 and MIG 2, respectively. He expressed happiness at the recommendation having been positively considered by the Government, adding that, “This will create positive sentiment, enhance off-take of homes in MIG, the largest among residential real estate segments – with obvious positives in form of growth for the housing sector.”

The Indian Government is gradually enhancing the interest subsidy linked with revised carpet area, providing a thrust to the housing sector, in order to achieve the goal of ‘Housing for All by 2022’.





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