The extension of the Credit Linked Subsidy Scheme (CLSS) for middle income group till March 2021 will boost demand for affordable housing, while rental housing policy for migrant labour/urban poor will open new business opportunities for builders, according to property developers and consultants.
The Centre on Thursday announced the launch of a new scheme to provide homes to migrant labour/urban poor at an affordable rent, and extended the interest subsidy scheme CLSS for the middle income group till March 2021 to boost housing demand.
Under CLSS, a home buyer can avail interest subsidy of up to Rs 2.7 lakh on home loan.
"The extension of CLSS up to March 2021 and infusion of Rs 70, 000 crore is an action oriented reform for the revivalof affordable housing segment," CREDAI said in a statement.
The industry body hoped that the real estate sector will get third set of stimulus, which will help boost liquidity, reduce input cost and restore supply of raw material to start construction of projects. It also sought tax sops for home buyers to boost demand.
"The extension of CLSS should see demand for another 2.5 lakh affordable homes, which should create demand for construction material as also provide jobs. The rental housing scheme under PMAY offers a business opportunity to the private sector, to build more rental housing stock through the PPP mode, with a concessionaire arrangement," Naredco President Niranjan Hiranandani said.
Anarock Chairman Anuj Puri said this will help push demand for affordable housing.
Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa at CBRE, said: "The announcement on rural infrastructure and affordable rental accommodations for urban and migrant workers under PPP partnership will open newer avenues for the construction industry."
Dhruv Agarwala, Group CEO, Housing.com, and PropTiger.com said: "The extension of CLSS by one year will prompt many of the fence sitters to buy homes at the earliest and thereby increase demand for affordable housing wherein industry has max unsold inventory across the country."
Knight Frank India CMD Shishir Baijal said:Today's announcement has reemphasized on government's agenda of promoting 'Affordable Housing' and 'Housing for All'. The extension of CLSS for another year will help demand for the affordable housing sector to inch back as and when the economy starts to revive."
JLL India CEO and Country Head Ramesh Nair said: "The extension of this CLSS scheme coupled with attractive mortgage rates will improve consumer sentiments and boost demand for affordable and mid segment housing."
Signature Global Chairman Pradeep Aggarwal said: "In the last couple of years, the subsidy of up to Rs 2.67 lakh under CLSS has been one of the biggest catalysts for home buyers, particularly for affordable housing in tier II & III cities."
Bhairav Dalal, Partner and Leader Real Estate Tax, PwC India, said: Affordable rental housing under PPP model sounds great as a concept. The execution and implementation of road map will be a key to its success."
Sanjay shukla, MD & CEO, Centrum Housing Finance, said: "The extension of the CLSS,along with the expectation of a correction in real estate prices and reduction in interest rates, will provide an impetus to the sector."
Disclaimer: No Business Standard Journalist was involved in creation of this content