Thursday, January 30, 2025
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Union Budget: PMAY holds key to affordable housing for millions

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New Delhi, Jan 28: The Pradhan Mantri Awas Yojana (PMAY-Urban) has made steady progress since it was announced in mid-2015 in providing affordable housing and going forward, adaptable, sustainable and low-cost construction technologies can be used to rapidly develop large mass housing projects, according to a report on Tuesday.

Data by the Ministry of Housing and Urban Affairs indicates 118.64 lakh homes have been sanctioned as of January 20, 2025. Nearly 90.22 lakh units have been completed, and nearly 112.50 lakh have been ‘grounded’.

In terms of the financials, nearly Rs 200,000 crore of central assistance has already been committed. “PMAY must be made accessible to more people, and awareness about it also needs a big shot in the arm,” said Anuj Puri, Chairman, Anarock Group.

An important aspect of PMAY is interest subsidy on home loans, and direct subsidy for individual house construction or enhancement. “Any announcements that Union Budget 2025-26 will make in context with affordable housing will doubtlessly involve PMAY.

Creative solutions and strong political will can bring this vitally important programme back to centre stage, which is where it belongs,” Puri added. Nationally, rising prices have led to a gradual tapering down of luxury housing, and this may trigger an inflection point where the cycle can once again turn positive for the affordable segment (units priced under Rs 40 lakh).

Any substantial announcement for the affordable housing segment in the upcoming Union Budget can strengthen the trend and give affordable housing a seriously needed leg-up, according to the report. “Even if such measures don’t initiate a full-blown revival, they can at least improve this segment’s overall prospects.

Finally, a healthy housing market caters to a broad range of buyers and doesn’t favour just one segment,” said Puri. After the pandemic, housing demand changed considerably. Now, Indians wanted larger and multi-functional homes with a comprehensive spread of lifestyle amenities.

IANS

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