Thiruvananthapuram: Real estate developers in Kerala have urged the Central Government to revise the outdated price cap of ₹45 lakh for affordable housing under the Pradhan Mantri Awas Yojana (PMAY) scheme. The builders argue that the current cap, which has remained unchanged for nearly a decade, no longer reflects the ground realities of construction costs and property prices.
Representatives from the Confederation of Real Estate Developers’ Associations of India (CREDAI) Kerala said that with a sharp rise in land, labour, and material costs, it is increasingly difficult to offer homes within the existing ceiling and still qualify for PMAY benefits.
Under the PMAY scheme, homebuyers purchasing units that fall within the affordable housing definition are eligible for interest subsidies under the Credit Linked Subsidy Scheme (CLSS). However, developers point out that the ₹45 lakh limit effectively excludes a large segment of urban buyers, especially in cities like Kochi, Thiruvananthapuram, and Kozhikode, where even modest homes now exceed that threshold.
Builders are now demanding that the cap be revised to ₹60–65 lakh, aligning it with current market rates and inflationary trends. They argue that a revised cap would not only benefit middle-class homebuyers but also stimulate the real estate sector and support the government’s vision of “Housing for All.”
Stakeholders are also calling for the revision of carpet area definitions and an update in income eligibility criteria to reflect the evolving demographics of India’s urban middle class.
