In his amongst the first decisions that PM Narendra Modi took after assuming the chair, was providing 3 crore homes to the urban and rural poor.
In a decisive move hours after taking office for a historic third consecutive term on June 10, Prime Minister Narendra Modi’s new Union Cabinet announced its first major policy decision: to provide assistance for the construction of an additional three crore rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY). This ambitious project aims to further the government’s mission of ‘Housing for All.’
Here’s how the real estate industry reacted to the news
Anuj Puri, Chairman – ANAROCK Group: The Modi government launched PMAY in 2016 with the aim to provide ‘Housing for All’ and since then over 2.61 crore houses have been built in his last term. To ensure continuity to the program and its commitment towards the same sentiment, the government has now approved the proposal to provide 3 crore rural and urban houses under PMAY. This decision is a significant stride forward in advancing dignified living and enhancing the ease of life for millions by fostering affordable housing. The affordable housing sector, a flagship scheme of the government, had not fared well over the last term. Affordable housing (homes priced under INR 40 lakhs) sales in Q1 2024 recorded 26,545 units, which is just 20% of the total sales. Concurrently, supply in this critical segment had also dropped from 44% in Q1 2019 to 18% in Q1 2024. Affordable housing is driven primarily by lower ticket sizes. The downward spiral of this erstwhile posterchild of the Indian housing industry began during the pandemic, and then morphed into a broader malaise. A affordable housing revival hinges on such government incentives for buyers and developers.
Prashant Sharma, President of NAREDCO Maharashtra: We welcome the Cabinet’s decision to provide assistance for the construction of three crore additional rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY). This initiative is a significant step towards achieving the vision of ‘Housing for All’ and will undoubtedly bolster the real estate sector, particularly in the affordable housing segment. The increased focus on rural and urban housing will not only improve the living standards of millions but also create substantial employment opportunities, thereby contributing to the overall economic growth. We at NAREDCO Maharashtra are committed to supporting this endeavor and look forward to collaborating with the government to ensure the successful implementation of this ambitious project.
Pritam Chivukula, Vice President of CREDAI-MCHI and Co-Founder & Director of Tridhaatu Realty: The Union Cabinet’s first decision to provide assistance for the construction of three crore additional rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY) is a progressive step that aligns with our commitment to addressing the housing needs of our nation and bolstering infrastructure development. The emphasis on both rural and urban housing is particularly commendable, ensuring that the benefits of this initiative are widespread and inclusive. This decision will not only enhance the quality of life for countless families but also stimulate economic growth by fostering related industries. We at CREDAI-MCHI are eager to collaborate with the government to achieve these ambitious targets and contribute to the successful implementation of PMAY.
Dr. Niranjan Hiranandani, Chairman, NAREDCO National: The real estate industry applauds the maiden cabinet’s decision to sanction the construction of three crore additional rural and urban houses under the Pradhan Mantri Awaas Yojana (PMAY) scheme. Affordable housing development is a crucial step towards revitalizing the property market. As the real estate sector is the second largest employer in the country, the extension of the PMAY scheme will have a ripple effect on employment and economic growth indices. The construction of urban-rural houses in the backdrop of last-mile connectivity being established under mega infrastructure projects will allow us to explore a multitude of new untapped real estate markets. In addition, the industry emphasizes the importance of upskilling labour to bridge the prevailing skill gap index. The government and private sector should align and reinitiate the extensive skill development program to provide better job opportunities for current unemployed workers. This, in turn, will result in improved socioeconomic conditions for all citizens.
Since 2015-16, under Prime Minister Modi’s leadership, the Pradhan Mantri Awas Yojana has been instrumental in providing assistance to eligible rural and urban households for the construction of houses with basic amenities. According to the Government, over the past decade, approximately 4.21 crore houses have been completed under this scheme, demonstrating the government’s commitment to improving housing infrastructure and living standards across the country.
As the Modi 3.0 administration embarks on this renewed journey, the focus on ‘Housing for All’ underscores a continued dedication to inclusive growth and development, aiming to make a tangible difference in the lives of millions of Indians.
Also Read: Housing Under Modi – A 10-Year Retrospective
