Maharashtra: Big boost for affordable housing in this budget

Ahead of Lok Sabha election, the Maharashtra government has made an allocation of Rs 6,895 crore for the much ambitious Pradhan Mantri Awas Yojana (PMAY) to push the agenda of affordable housing. State finance minister Sudhir Mungantiwar’s announcement in interim budget for 2019-20 comes close on heels of GST Council’s decision to substantially reduce rates to promote affordable housing. He has also proposed an outlay of Rs 2,400 crore for Smart Cities and Amrut Mission. The realty players hail the decision saying that home seekers to gain from infrastructure and connectivity push.

”This is a positive move and we should see more home seekers in the segment getting their dream homes, making these a reality. Infrastructure and connectivity will also gain as a result of other allocations, and these will help buyers of affordable homes in peripheral areas connect with their work-places,” said Niranjan Hiranandani, president of National Real Estate Development Council.

Paradigm Realty MD Parth Mehta observed that the higher allocation for PMAY and for smart cities were in tandem with GST Council’s move to cut rate to mere 1 per cent for affordable housing projects with units under the budget of Rs 45 Lakhs and carpet area of up to 60 sq mt in metros. ”Last year 40 per cent of new launches even in MMR region were in the affordable housing segment. This shall act as an impetus and bolster more affordable housing projects catering to the vision of housing for all by 2022,” said Mehta.

Nahar Group vice chairperson Manju Yagnik said, ”The budget affects the overall industry by having provisions for highway development, clean Maharashtra, and skilled labour which is the need of the hour.”