Affordable housing schemes in India

Thu, 09/08/2022 - 06:35

Author: JLL


India, being the second most populated country in the world, is fast emerging as one of the biggest investment destinations in real estate. However, it witnessed a wide gap between the demand, availability, and affordability of people. In order to ease the financial pressure and make housing accessible and available to all, the central government and state governments came up with several housing schemes catering to different segments and groups of society. Let’s find out more about them and understand the beneficiary portfolio, goals, and achievements of the schemes.

Central Government Schemes:

The central government keeps launching schemes for citizens of India that focus on providing benefits to individuals by touching on different aspects of basic requirements for the population belonging to rural, urban, low-income, and economically weaker sections. The central government launched several schemes to provide shelter at an affordable price, and millions of people reaped the benefits extended to them. The largest flagship programme recently launched by the central government is the Pradhan Mantri Awas Yojana. Let us understand its goals, eligibility, and achievements.

Pradhan Mantri Awas Yojana (PMAY)

One of the major flagship schemes implemented by the Ministry of Housing and Urban Affairs, the Pradhan Mantri Awas Yojana, was launched for both urban and rural populations with the aim of providing pucca houses to all income groups to reduce the widening gap between availability and affordability. Thus, the scheme is classified based on the annual income of a household to provide financial assistance to different income groups. From low-income groups (LIGs) to middle-income groups (MIG) to economically weaker sections (EWS), PMAY covered all segments. However, MIG segment was excluded in March 2021. Besides, Under PMAY (G), the Beneficiaries are determined using Socio-Economic and Caste Census (SECC) characteristics, which is verified by Gram Sabhas.

The total sanctioned houses under PMAY-U are 122.69 lakh, 103.4 lakhs are grounded, and 62.38 lakhs are constructed successfully. The estimated cost of constructing all the sanctioned houses is 8.31 lakh crore out of which, Rs. 2.03 lakh Cr. were committed by Central and Rs. 120212 Cr. are released until now. Under PMAY (G) scheme, 2.28 crore houses were sanctioned to the beneficiaries out of which 1.75 crores houses have been completed as on 09.03.2022. In order to complete the remaining target, the PMAY(G) scheme is extended till March 2024.

One can reap the benefit of the scheme if they do not have a pucca house registered under the name of any family member. However, adults are treated as separate entities irrespective of their marital status, and hence can be considered under PMAY. You can check the official websites of PMAY (U) and PMAY (R) for detailed information on the scheme.

State Government Housing Schemes:

Alike central government, state governments launched their schemes to address and alleviate the mass issues concentrating mainly on food, clothing, shelter, health, and the environment. Socio-economic issues are the main concerns when it comes to low-middle class groups, middle-class groups, and economically weaker sections. To resolve the basic requirement of the pucca house, many state governments launched their schemes under PMAY while a few launched them separately under the state housing board.

Below are the few schemes implemented in the metropolitan cities:

Tamil Nadu Housing Board:

With an aim to reduce the gap between the demand and supply of dwellings in Tamil Nadu, the board fulfils the most ambitious dream of owning a home. The board has several sub-schemes rolled out for different parts of the state, which include Besant Nagar Division, Thanjavur Housing Division, Trichy Housing Division, TNHB Erode Housing Division, TNHB Coimbatore Housing Unit Scheme, etc. To qualify for any scheme, you must be a native of Tamil Nadu, fall in the income category of a salaried individual (Lower Income Group (LIG), Middle Income Group (MIG), Higher Income Group (HG), and Super Higher Income Group (SHIG)), and must not own any property plot under any government housing schemes.

Currently, the board is inviting applications from eligible applicants under the "Own Your Housing Scheme" for residential units through news portals, online sites, and publishing advertisements in leading newspapers. The eligible applicants who have attained 21 years of age and own no flat or plot provided (including your spouse and children) under the TNHB scheme are considered and proceeded further for segregation based on the reservation categories. The allotment committee, consisting of revenue members of TNHB and members of the state government, then starts allotting the residential units based on the lucky draw, while commercial units are allotted through a sealed tender-cum-open auction process.

You can check the availability and development plans here.

Karnataka Housing Board

In order to provide pucca houses to socially and economically weaker sections, the Karnataka state government incorporated the Rajiv Gandhi Housing Corporation Limited (RGHCL). It aims to maintain an equal ratio of demand and supply, which currently shows a wide gap between the two. This year, the board introduced the Chief Minister’s multistoried Bangalore Housing Scheme 2022 to provide houses to the underprivileged, categorising the population under the Below Poverty Line (BPL) irrespective of their locality – urban or rural. One can apply on the Ashraya portal, and the applications are submitted to "Nagar Ashraya Samiti", including the applications under "local reservation" through the lottery system.

You can check here the number of allotted and available flats listed on the state’s official site.

Delhi Development Authority

Each year, the Delhi Development Authority invites applications on its website intending to provide flats at an affordable rate to people from different sections of society and income groups. This year, the DDA has planned to offer houses to waitlisted individuals under the DDA Special Housing Scheme 2021. The authorities will provide a total of 18335 homes to poor people on a "first come, first served" basis to those belonging to HIG, MIG, LIG, JANTA, and EWS sections. For homebuyers with special preferences, a new clause has been added to the scheme known as preferential location charges (PLC), where the homebuyers are expected to pay an extra 1.5%-3% on the total cost of the flat. It promises to offer homes and basic amenities at a total cost of Rs. 7 lakhs through the Pradhan Mantri Awas Yojana.

Visit the link to find more information on the scheme.

Maharashtra Housing and Area Development

MHADA was established by the Maharashtra government to fulfil the need for affordable housing across Maharashtra. It launches its new projects at prime locations in each city and also focuses on the redevelopment of slums to help the poor and needy raise their standard of living. The MHADA lottery also launches its projects in Pune, Konkan, and other parts of the state. MHADA 2022 Mumbai launched its projects in Ashokvan, Chandivali, Powai, Shankar Nagar (Chembur), and Shastri Nagar. The beneficiaries are classified into different salaried groups, such as lower-income groups, middle-income groups, high-income groups, and economically weaker sections. To obtain the benefit from the scheme, the applicant must have attained 18 years of age and have a domicile certificate that proves that he/she has stayed in Maharashtra for the last 15 years. The entire application process is computerized, which makes it effortless and transparent as it ensures that the applicants are given an equal opportunity to win the lottery under MHADA 2022.

For more information, visit MHADA official website.

West Bengal Housing Department

The West Bengal Nijashree Housing Scheme 2022 is being implemented to enhance the quality of life of those people belonging to the lower-income group and middle-income groups of the state. The scheme focuses on developing and allotting the multi-storied flats to eligible families through a lottery based on ownership, where the freehold land will be allocated to the beneficiary on subsidy. The government will construct dwelling units with a minimum of 16 flats in g+3 buildings on the government lands or the lands of local bodies or other parastatals. The minimum built-up area of 378 sq. ft. will be constructed for the LIG category and 559 sq. ft. area flat for the MIG category. The flat cost will be charged, excluding the cost of land and off-site infrastructure, which includes the construction of internal roads, boundary walls, making drainage systems, etc.

You can check the project plan and find out more information about the scheme on the state’s official website

Now that you have all the required information for each scheme, you can visit the official websites, fill out the form, and be a part of these affordable schemes.