Real estate developers and consultants expect housing sales to rise, especially in small cities, as the government has increased the carpet area to up to 200 square metre for availing interest subsidy under PMAY-U.
The government yesterday relaxed norms on carpet area by 33 per cent for getting subsidy under the Pradhan Mantri Awas Yojana-Urban (PMAY-U).
The housing and urban affairs ministry enhanced the carpet area of a house to 160 sq metre from 120 sq metre for Middle Income Group-I (MIG-I).
For MIG-II, it has been increased to 200 sq m from 150 sq m. Under the Credit Linked Subsidy Scheme (CLSS), each beneficiary can avail of subsidy up to Rs 2.35 lakh on purchase of a house.
CREDAI President Jaxay Shah tweeted that this is a government's gift to each MIG home buyer and big push for tier II-III urban housing.
Rajeev Talwar, Chairman, NAREDCO said: "The Middle Income Group segment to which these carpet sizes would cater to, is the biggest in the country, therefore, real estate activity is bound to experience a revival."
Harshil Mehta, JMD & CEO, DHFL said: "The Government's announcement of increasing the sq-ft scale of residential units under the PMAY scheme, as well as the RBI's recent decision to increase the housing loan limits, reflect the government's strong intent to achieve its Housing for All mission by 2022 by enabling home ownership for every Indian."
Disclaimer: No Business Standard Journalist was involved in creation of this content