Budget 2019 expectations: 'Government should increase the threshold value of affordable housing from Rs 45 lakh to Rs 75 lakh'

As Budget 2019 is around the corner, real estate developers have demanded from the Finance Minister Nirmala Sitharaman an increase in the threshold value of the affordable housing under the Pradhan Mantri Awas Yojana (PMAY) scheme from the existing Rs 45 lakh to Rs 75 lakh. The industry insiders have recommended that the carpet area threshold for affordable housing be increased from the current 60 sq. mt. to 90 sq. mt. in metros and from 90 sq. mt. to 120 sq. mt. in non-metro cities, in line with the consumption trends.

Speaking on the push that affordable housing requires to meet the housing for all by 2022 target, J C Sharma, Vice Chairman and Managing Director, SOBHA Limited said, "With the upcoming Union Budget 2019, we hope that the Government will continue to address the concerns of the real estate sector and give a much-needed fillip to the housing market. One of the areas that require the immediate attention of the Government is increasing the threshold value of affordable housing under the Pradhan Mantri Awas Yojana (PMAY) scheme from the current Rs 45 lakh to 75 lakh. Today, in markets such as Bengaluru, the lands prices a, Rs 75 lakh bracket." 

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Sharma recommended that the carpet area threshold for affordable housing be increased from the current 60 sq. mt. to 90 sq. mt. in metros and from 90 sq. mt. to 120 sq. mt. in non-metro cities, in line with the consumption trends.  By redefining the threshold value and area of homes under affordable housing, the Government will bring the number of projects under the purview of ‘affordable housing’. This will enable a wider segment of the market to avail the income tax benefits.