This has come at an appropriate time as there is a growing demand in this particular segment of housing with huge potential for growth. This is therefore a positive step taken towards providing affordable housing to the masses.
Low cost housing can become a reality only if home loan interest rates are reduced, as then it becomes more economically viable for them to buy their home. Low cost housing is the need of the hour. This announcement comes at the right time, and will be of great help to the people who aspire to buy a home within their limited budget. Going forward, this will give a boost to demand for low cost housing.
The mission’s scope will include all 4,041 statutory towns of India. Under the scheme, all the cities and towns will be covered in phase-III. In the first two years of phase 1, it will cover 100 cities and 200 more cities will benefit in the second phase.
This announcement augurs well for people who fall under the Economically Weaker Section (EWS) category and also with annual earning income of up to Rs 3 lakh. In addition to realigning the income criteria, the minimum unit size for EWS housing has also been increased to 30 sq m from the previous 25-27 sq m.
The 4 components of National Urban housing Mission have been dealt with properly. Interest subvention will spur demand, as many people would now become eligible buyers. The Central Government has granted assistance upto Rs 3 Lakhs per person is also a welcome step. It is now to be seen how effectively and transparently it is implemented between states and Union government.
These grants and assistance packages can boost housing demand and also spur the growth of the housing industry in the country.
The next big challenge for the government will be to come out with some relief for the Middle income group or the middle class (people earning Rs 50,000 to 2,00,000/- per month) who are presently the biggest chunk of buyers, have been completely ignored in this policy.