Pradhan Mantri Awas Yojana (PMAY)
The recent decision of the government to increase the carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG) under Pradhan Mantri Awas Yojana (PMAY) drew accolades from the real estate builders as it will enable buyers to get better quality home. The move also means that the private developers will have incentives to increase scale. Under PMAY, the area of the house is different for all categories and it's the carpet area and not the super area that is to be looked at. As a matter of fact, the Cabinet‘s decision is a massive positive for the macros of housing. The home buyer now has a larger pool of prospective houses to choose from. The home buyers, who were delaying their home purchase, will now be given a further push. Builders, meanwhile, will not only enjoy the general uptick in the market but can also accelerate the sale of housing units, VC & MD, Indiabulls Housing Finance, Gagan Banga said. Echoing this viewpoint, Rajesh Krishnan, Founder & CEO, Brick Eagle- a platform for affordable housing, said that the government decision to enhance the classification of affordable housing by extending the carpet area to a maximum of upto 150 metres (over 1,600 sq.ft.) is set to act as a catalyst for the fragile real estate sector by reviving demand.