Page 25 - CV April-May 2019 issue

This, too, will help in lowering interest rates November, the cabinet approved increasing policies, if implemented well, could give a
on home loans. the carpet area of houses eligible for interest much-needed boost to this segment and
subsidy under this scheme. Consumers from make it a powerful growth driver for the real
Home loan rates apart, the other major factor
economically weaker sections and low- estate sector.
that could give a boost to real estate in the
income groups, for their part, are eligible for
near future is affordable housing. In 2017, A boom in affordable housing and the
an interest subsidy at the rate of 6.5% for a
the government tried to incentivize affordable resulting construction and allied jobs can
tenure of 20 years, or during the tenure of
housing with renewed zeal. The guidelines of help make a significant dent in the malaise of
the loan, whichever is lower.
the Pradhan Mantri Awas Yojana (urban) joblessness. It can also have a multiplier
(PMAY) were amended to encourage more Affordable housing, however, can achieve effect on the national gross domestic
millennials—married or single—to invest in the desired levels of momentum and growth product, and boost the demand for different
property. Even unmarried children of a much faster with the participation of the categories of products and services. India's
household are now eligible to apply for loans private sector, which has shied away from it real estate is transitioning to a new era after
under PMAY. The government is trying to so far for several understandable reasons. In what has been a rather eventful year. And
attract both middle-income and low-income a much-awaited move to change this the prospects for homebuyers, developers,
groups to this segment. situation, the Union budget for 2017–18 and the financial ecosystem are brighter than
granted infrastructure status to the affordable they have ever been.
In September, the central government
housing segment. More recently, the ministry
extended, under PMAY, the benefit of interest Brotin Banerjee is managing director and
of housing and urban affairs introduced as
subsidy on home loans for households in the chief executive officer, Tata Housing.
many as eight public-private-partnership
middle-income group. This scheme was
options to encourage private investments in
originally scheduled to end in December, but
affordable housing projects. These new
has now been extended till March 2019. In

23 / CONSTRUCTION VISION / May June 2019