In a bid to make citizens’ dream of having a home of their own a reality, Prime Minister Narendra Modi has made it a mission to provide ‘Housing for All’ by 2022, the 75th year of country’s independence. Courtesy various Government schemes, the housing sector is likely to contribute around 11 percent to India’s GDP by 2020, observes Priyanka Sharma of Elets News Network (ENN).
The Government has launched a comprehensive mission “Housing for All by 2022” in 2015. It envisages addressing the requirement of houses for the urban poor including slum dwellers through:
- Slum rehabilitation of slum dwellers with participation of private developers using land as a resource
- Promotion of affordable housing for weaker section through credit linked subsidy
- Affordable Housing in partnership with public and private sectors
- Subsidy for beneficiary-led individual house construction
India needs investment to the tune of $4 trillion over the next 5-6 years to fulfil the government’s various schemes. The Housing for All by 2022 initiative alone is likely to bring $1.3 trillion investments into the residential sector by 2025, states a report by Anarock Property Consultants.
A Technology Sub-Mission under the Mission has been set up to facilitate adoption of modern, innovative and green technologies and building material for faster and quality construction of houses.
Technology Sub-Mission also facilitates preparation and adoption of layout designs and building plans suitable for various geo-climatic zones. It will also assist States/Cities in deploying disaster resistant and environment friendly technologies.
Under the Pradhan Mantri Awas Yojana (PMAY), a credit linked subsidy on home loans is provided for Economic Weaker Section (EWS), Low Income Group (LIG) and middle-income groups. This loan can be availed for new or re-sale-purchase of home, construction or, for extension or improvement of rooms, kitchen, toilet, etc.
How RERA and GST impacted the housing sector?
Real Estate Regulatory Authority (RERA) has had a massive impact on both buyers and developers in the States where it has been implemented in the intended manner. Real estate developers are aware that they have to now toe the line and conduct their business responsibly. Buyers know that they have a strong redressal system to rely on GST has not had much of an impact, but that is probably because it is still work in progress.
It has certainly made a clear classification between ready-to-move and under-construction properties, with the former having escaped its ambit. However, it will eventually serve the same purpose as RERA, and that is to render the real estate industry more transparent and accountable.
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