To note, the carpet area of a house has been enhanced to 160 sq m from 120 sq m for middle income group-I (MIG-I), and to 200 sq m from 150 sq m in case of MIG –II. 

Besides, the government has proposed a new PPP (public-private partnership) policy for the affordable housing segment. Eight different models have been proposed under two schemes with central financial assistance, including a direct benefit transfer (DBT) model, mixed development cross subsidizing scheme, annuity-based subsidizing housing, direct relationship ownership housing and direct relationship rental housing.

Development of the housing sector has direct impact on GDP growth and consumption pattern in the economy. Besides increasing construction activities and growth in the housing sector, this initiative is aimed at fast-tracking the slow-moving ‘Housing for All’ scheme. 

Under the PMAY initiative, the government aims to build around three crore houses in rural areas and one crore houses in urban areas to provide affordable housing for all by 2022. Besides having potential for creating jobs, this would have positive effect on core sectors such as cement, steel, machinery and other allied industries. 

With this initiative, affordable housing finance companies catering to low-income customers would get more support. Affordable housing finance companies have grown at an impressive pace over the past five years. 

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