If you are one of those looking for a home under the Pradhan Mantri Awas Yojana (PMAY), then there is good news for you. The Modi government has approved the proposal to provide 3 crore additional rural and urban houses under PMAY.

“The Cabinet has decided to further expand the Pradhan Mantri Awas Yojana and construct 3 crore additional rural and urban houses. This decision underscores the government’s commitment to addressing the housing needs of our nation and ensuring that every citizen leads a better quality of life. The expansion of PMAY also highlights our government’s commitment to inclusive growth and social welfare,” Prime Minister Narendra Modi said on Monday.

It may be noted that the Modi government had launched PMAY in 2016 with the aim to provide ‘Housing for All’ and since then over 2.61 crore houses have been built in his last term. To ensure continuity to the program and its commitment towards the same sentiment, the government has now approved the proposal to provide 3 crore additional rural and urban houses under PMAY.

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“This decision is a significant stride forward in advancing dignified living and enhancing the ease of life for millions by fostering affordable housing,” said Anuj Puri, Chairman, ANAROCK Group.

The affordable housing sector, a flagship scheme of the government, had not fared well over the last term. Affordable housing (homes priced under INR 40 lakh) sales in Q1 2024 recorded 26,545 units, which is just 20% of the total sales. Concurrently, supply in this critical segment had also dropped from 44% in Q1 2019 to 18% in Q1 2024, according to ANAROCK.

“Affordable housing is driven primarily by lower ticket sizes. The downward spiral of this erstwhile posterchild of the Indian housing industry began during the pandemic, and then morphed into a broader malaise. A affordable housing revival hinges on such government incentives for buyers and developers,” added Puri.

Dr. Niranjan Hiranandani, Chairman, NAREDCO National, said that affordable housing development is a crucial step towards revitalizing the property market. As the real estate sector is the second largest employer in the country, the extension of the PMAY scheme will have a ripple effect on employment and economic growth indices.

“The construction of urban-rural houses in the backdrop of last-mile connectivity being established under mega infrastructure projects will allow us to explore a multitude of new untapped real estate markets. In addition, the industry emphasizes the importance of upskilling labour to bridge the prevailing skill gap index. The government and private sector should align and reinitiate the extensive skill development program to provide better job opportunities for current unemployed workers. This, in turn, will result in improved socioeconomic conditions for all citizens,” he added.

G Hari Babu, National President of NAREDCO, said, “The decision to construct an additional 3 crore houses under the Pradhan Mantri Awas Yojana in the very first cabinet meeting shows the intent of the new government to continue with a welfare approach, indicating that measures to boost housing demand would be among the top priorities. This initiative will not only provide shelter to the poor and the middle class but also generate employment and stimulate the economy.”