Real Estate developers hail CLSS extension, expect big boost in job creation, demand in allied sectors

Real estate developers have hailed Modi government for extending Credit Linked Subsidy Scheme (CLSS) by one more year to 31st March 2021. Developers expect that the move will push affordable housing segment in the real estate sector as the major beneficiaries will be the lower middle class that has an annual income of Rs 6 lakh to Rs 18 lak. They said that it will create new job opportunities in the affordable construction sector and demand in the allied sectors like cement, steel, transport and other construction materials.

Hailing the extension of CLSS for one more year; Anuj Puri, Chairman – ANAROCK Property Consultants said, "This will help push demand for affordable housing. Ever since its implementation in 2017, the CLSS scheme has already benefited over 3.3 lakh families and the extension will further aid many more families to avail housing under this scheme. As a ripple effect of increased demand for affordable housing, it will positively push demand for raw materials like cement, steel, transport and other construction materials." Puri went on to add that government’s push for affordable housing has been unmistakable in the last six years. Its Housing for All by 2022 project has already resulted in multiple sops and incentives. As a consequence, there has been a significant increase in activity in the affordable segment over the last few years.

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Speaking on the CLSS extension, Pradeep Aggarwal, Chairman at ASSOCHAM National Council on Real Estate, Housing and Urban Development said, "In the last couple of years, the subsidy of up to Rs 2.67 lakh under Credit Linked Subsidy Scheme has been one of the biggest catalysts for home buyers, particularly for affordable housing in tier II & III cities. With property prices remaining stable, the extension will prompt more people particularly the mid-income group to buy homes."

Dhruv Agarwala, Group CEO, Housing.com said, "The extension of the Credit Link Subsidy Scheme by one year will prompt many of the fence-sitters to buy homes at the earliest and thereby increase demand for affordable housing wherein industry has max unsold inventory across the country. This will also help sustain employment as real estate supports close to 200 allied industries. The proposed affordable rental housing under PPP (Public-Private Partnership) is a welcome step. This will help in effectively tackling any migrant labourers issues in the future."