The Government has increased the carpet area of houses eligible for interest benefit under the PM Awas Yojna (PMAY) for the middle-income group or MIG by 33 per cent as it looks to bring more beneficiaries under its fold and achieve the target of ‘housing for all’ by 2022.

The measure implies that households with an annual income of up to Rs 18 lakh can now avail themselves of Rs 2.3 lakh upfront subsidy for a house measuring up to 2,100 sq ft. Households with income from Rs 6-12 lakh fall within the MIG-1 category, while those with income between Rs 12-18 lakh qualify as MIG-2.

So far, houses with a carpet area up to 120 sq. m. (1.291 sq ft) for MIG-I and up to 150 sq. m. (1.614 sq ft) for MIG-II were eligible for interest subsidy. They have been increased to 160 sq. m. (1,722 sq ft) and 200 sq. m. (2,153 sq ft), respectively.

“MIG-1 and MIG-2 are the segments that need maximum government support to access housing within their budget and this move will allow inclusion of a wider geographic and demographic pool of buyers across the country,” Aashish Agarwal, Senior Director (Head Consulting) at Colliers International India, said.

The decision to increase the carpet area for interest benefit under the credit linked subsidy scheme is yet another step in the direction of expanding the beneficiary base for government schemes to promote the housing sector, he added.

“This change will have a significant impact on home sales in tier II and tier III cities where the land costs and therefore capital values of properties are low and larger apartments are within the reach of such buyers. Timing of this increase in carpet area eligibility norms is perfect, as the RBI has recently decided to revise the housing loan limits for priority sector lending from Rs 20 lakh to Rs 25 lakh in cities other than metros,” Anuj Puri, Chairman of Anarock Property Consultants, said.

It is a phenomenal move to boost the sales of large-sized apartments, he added.

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