New Delhi, February 7, 2024: The Indian government is set to roll out a middle-class housing scheme aimed at assisting deserving sections of the population currently residing in rented houses, slums, chawls, and unauthorized colonies to acquire or construct their own homes. The initiative, aligned with the government’s overarching ‘Housing for All’ mission, including the Pradhan Mantri Awas Yojana (PMAY)-Urban and the Pradhan Mantri Awas Yojana-Rural or Grameen schemes, is expected to have a positive impact on the real estate, construction, and plotted development sectors.
According to sources familiar with the matter, the housing and urban affairs ministry will define income standards, locations, and types of accommodation eligible for the scheme. Once these specifications are finalized, they will be forwarded to the finance ministry, which will determine the allocated budget for the program.
“The definition, currently being worked out, will come with the scheme. It will be defined in terms of income, types, and location of housing,” said an anonymous source from the government. The new scheme is anticipated to facilitate the redevelopment of encroachment areas such as slums, potentially fostering growth and development in various sectors.
Pushpender Singh, the Managing Director of JMS Group, expressed optimism about the scheme’s impact on the real estate market, construction, and plotted development sectors. Anuj Puri, Chairman of Anarock Group, added that the initiative would particularly benefit those residing in substandard housing conditions. This move comes at a time when India’s residential market is experiencing a notable upturn, with rising real estate costs posing challenges for many prospective home buyers.
Finance minister Nirmala Sitharaman, in an interview with Mint, disclosed that the scheme’s beneficiaries would include individuals living in rented houses, chawls, and unregulated colonies, as outlined by the Prime Minister. She clarified that the upcoming housing scheme for the middle class would not be an extension of the existing Pradhan Mantri Awas Yojana (Urban) Mission, launched in June 2015 to provide housing for all in urban areas.
As of now, both the finance and housing ministries have not responded to emailed queries regarding the specifics of the scheme. The final details are expected to be revealed once the income standards, accommodation types, and locations are officially determined and approved by the concerned ministries.