The union cabinet has recently increased the carpet area of houses under the government’s affordable housing scheme, which is to bring smiles on the faces of the builders and middle-class home buyers.
In a fresh decision, under the MIG-I category, the carpet area has been increased from 90 sq meter to 120 sq meter. Under the MIG-II segment, it has been raised to 150 sq meters from 110 sq meters.
The government move will benefit both the buyer group as well as the developers. Home buyer’s access bigger, ready-to-move-in houses at lower costs and on the other hand developers with large inventories could look forward to renewed demand, triggering a virtuous cycle of employment generation and economic growth.
Under the MIG-I category, a 4 per cent interest subsidy is provided to the beneficiaries having an annual income of Rs 6-12 lakh and up to Rs 9 lakh loan. Under the MIG-II category, the beneficiaries with an annual income of Rs 12-18 lakh get 3 per cent interest subsidy on loans up to Rs 12 lakh.
Under the PMAY-U, the central government aims to provide houses to all the urban poor by 2022. Currently, the shortage of houses is pegged at over 10 million in the urban areas and has led to take the step. The government decision has earned praises from the developers across the country.
The government approval on the increase in the carpet area limit of affordable housing for middle income group (MIG) from 90 Sq mtr to 120 sq mtr and from 110 sq mtr to 150 sq mtr is praise worthy. This will give individuals in the MIG category a wider choice in developer’s projects and will boost the sale of ready flats in the affordable segment meeting the challenges of urban housing shortage. This income tax provisions is to cover the projects sanctioned on or before 31st March 2019 will also help the developers in clearing the unsold stock encouraging the developers to launch new projects." said Mr. Ssumit Berry, Managing Director, BDI Group.
The housing and urban affairs ministry is implementing the Credit Linked Subsidy Scheme for Middle Income Group (CLASS for MIG) under the PMAY-U since January 1st this year. The scheme is currently effective till March 31, 2019.