The Central Government has recently announced to increase the carpet area of MIG residential units in order to attract aspiring home buyers toward affordable housing. This move has brought cheers among many home buyers, on the other hand, many experts believe that this will further help in increasing the home sales mostly in tier-II and III cities.
As per the recent notification by Ministry of Housing and Urban Affairs, the carpet area of houses eligible for benefits under the Pradhan Mantri Awas Yojana’s (PMAY’s) credit-linked subsidy scheme (CLSS) is now increased to 160 sq meters for the middle-income group-I (MIG-I) and 200 sq meters for the MIG-II. However, earlier it was fixed at 120 sq meters for MIG-I and 150 sq meters for MIG-II. This is the second such hike in carpet area in less than a year.
Anuj Puri, chairman, ANAROCK Property Consultants said, “This move will have a significant impact on home sales in tier-II and tier-III cities, where the land costs and therefore, capital values of properties are low and larger apartments are within the reach of such buyers.”
Real estate research firm CBRE has also welcomed this move and said that this will help in increasing the momentum of the housing market, as it will allow a large proportion of housing, particularly in tier-I cities, to be covered under the scheme. Furthermore, such initiative will definitely push more and more middle-income groups to buy affordable houses under PMAY.
Also few days back, Reserve Bank of India (RBI) has decided to revise the home loan limits under priority sector lending (PSL). As per the new guidelines, the housing loan limits for PSL eligibility increased from Rs 28 lakh to Rs 35 lakh in metropolitan centers and from Rs 20 lakh to Rs 25 lakh in other centers.