The Centre and state government’s plan to boost supply of affordable housing, with two lakh new houses by 2021, is likely to shake up Gujarat’ realty sector and may even lead to a softening of prices
AHMEDABAD: The Centre and state government’s plan to boost supply of affordable housing, with two lakh new houses by 2021, is likely to shake up Gujarat’ realty sector and may even lead to a softening of prices.
Under the Pradhan Mantri Awas Yojana — Urban (PMAY-U) scheme which envisages the development of 5.24 lakh affordable houses, 2.70 lakh have already been built. The remaining 2.54 lakh units are under construction and will be completed by 2021, one year ahead of the government of India’ (GoI) deadline.
In the last two years alone, Gujarat Housing Board (GHB) and ULBs (urban local bodies) have developed some 30,000 affordable houses costing between Rs 11 lakh and Rs 19 lakh. Another 30,000 houses are under construction.
Constructing 4 lakh dwelling in the next two years could be a challenge, said a real estate developer, who did not see any negative impact on the housing sector, given the limited number of people opting for government-built units.
Lochan Sehra, secretary of the (housing and Nirmal Gujarat), urban development and urban housing department said, “According to the latest GoI data we have maintained our lead in construction of houses under the PMAY(U) scheme with 82% completion. According to the target given by the chief minister, we are ahead of the national deadline of 2022 in completion of houses approved under the PMAY(U) demand survey.”
“We will not only achieve the targeted number of homes, but we will surpass the target. The 2.5 lakh houses that are under construction will be ready in the next 18 to 20 months’ time,” he added.
Various government agencies have forayed into affordable housing directly and through PPP (public private partnership). The redevelopment of houses on private slum land is expected to soften prices of affordable homes.
“Earlier only private sector developers were active in the affordable housing segment. The government is not only directly building or promoting under the PPP model but also giving subsidies up to Rs 2.5 lakh in the affordable housing category,” said Sehra. Some 1.8 lakh affordable homes are expected to be developed in this segment in the coming two years, he said.