Affordable housing is the most preferred real estate segment across the country as it fits every class of buyers. In fact, the number of unsold units fell by 12% in the NCR region between the first quarter of 2020 and the first quarter of 2022, according to a recent Anarock poll. Given that buyers are returning to the marketplaces, this denotes a favourable growth tone for the real estate industry. Their continued preference for affordable housing is reflected by the strong post-Covid demand and sales it has seen.
Along with being the choice of buyers, the sale of such projects equally depends on the availability of favourable factors, primarily government guidelines that make the process of investment convenient and profitable for buyers. Haryana is one of the most convenient real estate hotspots for investment as it hosts several policies that make real estate projects affordable and accessible for buyers. Haryana has set an example for other states to follow housing policies. The state has introduced measures to ease the buying and selling of projects and has set boundaries for the expansion of residential development.
Haryana has implemented the Affordable Housing Policy for low-rise and high-rise housing and Deen Dayal Jan Awas Yojna (DDJAY) for plotted housing or low-rise independent floors. The policy was introduced in February 2016 for low and medium-potential towns in Haryana, including Karnal, Kurukshetra, Ambala City, Ambala Cantt, Yamuna Nagar, Jagadhri, Bahadurgarh, Hisar, Rohtak, Rewari, Bawal-Dharuhera Complex, Gannaur, Palwal, Hodel, controlled areas declared in Faridabad District (aside from the controlled areas of Faridabad-Ballabgarh Complex).
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The state had enhanced the commercial portion of the Net Planned Area at 175 FAR from 4% to 8% to be sold in the market in order to entice developers to join in the plan. The goal was to increase the developers’ profit margin even more. Haryana had raised the price for carpet space from Rs 4,000 per square foot to Rs 4,200 per square foot and raised the price for the balcony area from Rs 500 per square foot to Rs 1,000 per square foot, with a ceiling of Rs 100,000 per unit, taking into account the growth in raw material costs. A 2BHK apartment costs as little as 26 lakh rupees under the Haryana Urban Development Authority (HUDA) Affordable Housing Scheme, plus 1% GST. Under PMAY, the government offers a subsidy in the amount of 2.67 lakh. Home purchasers feel more confident because the entire allotment procedure is transparent and conducted online.
The hub of Haryana’s effort to build more inexpensive homes in Gurugram, which has more than a lakh units under construction in 125 affordable housing projects. One of Gurugram’s main growth drivers is its robust corporate economic environment. The construction of NH-48 in 2008 sped up development in Gurugram. Other significant infrastructure projects including the Kundali Manesar Palwal Expressway, the Rapid Metro, the Signal Free Corridor on Golf Course Road, and the Delhi Metro Extension were implemented later. The success of each of our affordable housing initiatives demonstrates the significant unmet demand for high-quality houses from reputable builders who have a reputation for providing excellent value.
(By Ashwani Kumar, Pyramid Infratech)