Our Bureau The Centre has increased the carpet area of houses eligible for interest benefit under the PM Awas Yojna (PMAY) for the middle-income group ( MIG) by 33 per cent, as it looks to bring more beneficiaries under its fold.

This is the second increase in carpet area in less than a year, and is part of the Centre’s effort to achieve ‘housing for all’ by 2022.

The measure implies that households with an annual income of up to ₹18 lakh can now avail ₹2.3 lakh upfront subsidy for a home of up to 2,100 sq ft. Households with income between ₹6 lakh and ₹12 lakh fall within the MIG-I category while those with income between ₹12 lakh and₹18 lakh qualify as MIG-II.

So far, houses with carpet area of up to 1,291 sq ft for MIG-I and up to 1,614 sq ft for MIG-II were eligible for interest subsidy. They have been increased to 1,722 sq ft and 2,153 sq ft respectively.

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

Bigger beneficiary base

The decision to increase the carpet area for interest benefit under the Credit Linked Subsidy Scheme is yet another step towards expanding the beneficiary base for government schemes to promote the housing sector, he added.

Niranjan Hiranandani, President of Naredco and co-founder and MD of Hiranandani Group, said the move will enable people in smaller towns to acquire bigger houses, as the cost of houses in smaller towns is far lesser.

Naredco, or National Real Estate Development Council, is an autonomous self-regulating body.

“The timing of this increase in carpet area eligibility norms is perfect, as the RBI recently decided to revise the housing loan limits for Priority Sector Lending from ₹20 lakh to ₹25 lakh in cities other than metros,” said Anuj Puri, Chairman of Anarock Property Consultants.

“The latest relaxation clearly highlights that the government is receptive to inputs from various stakeholders. This will not only enable more homebuyers to avail the subsidies and other incentives under the scheme, but will also help bolster construction activity in the affordable housing sector in the country,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.

comment COMMENT NOW