In a landmark decision, the Union Cabinet, led by Hon’ble Prime Minister Shri Narendra Modi, has approved Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, a transformative initiative aimed at achieving housing for all in urban India. The scheme, with a total investment of ₹10 lakh crore, including ₹2.30 lakh crore in government support, is set to provide financial aid to one crore urban poor and middle-class families over the next five years. This ambitious plan will facilitate the construction, purchase, or rental of affordable homes, significantly enhancing the quality of life for millions and reaffirming the government’s commitment to secure and accessible housing for every citizen. PMAY-U 2.0 builds on the achievements of its predecessor, which has already sanctioned 1.18 crore houses and delivered over 85.5 lakh homes to urban beneficiaries.

Industry Reactions:

Prashant Sharma, President, NAREDCO Maharashtra:
“The approval of PMAY-U 2.0 by the Union Cabinet represents a major advancement in meeting the housing needs of our urban population, especially for economically weaker sections and middle-class families. With a robust target to assist one crore families and a substantial investment of ₹10 lakh crore, this initiative underscores the government’s steadfast commitment to housing for all. This scheme not only aims to improve the quality of life for millions but also serves as a catalyst for growth in the real estate sector, driving job creation and economic resilience. By channeling financial assistance through states, union territories, and public lending institutions, PMAY-U 2.0 enhances collaboration between the government and private sector, essential for inclusive urban development. The focus on affordability and accessibility ensures that urban housing remains within reach for those most in need. It is crucial that the implementation of this scheme is efficient, ensuring timely delivery of benefits to the intended beneficiaries. This initiative, reflecting the vision of the Hon’ble Prime Minister, sets a new standard for future urban development.”

Pritam Chivukula, Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty:
“We commend the Government for the decisive approval of Pradhan Mantri Awas Yojana-Urban 2.0, a significant milestone in fostering inclusive urban development. This initiative not only promises to transform the urban landscape but also makes the dream of homeownership attainable for urban poor and middle-class families. The comprehensive financial support of ₹2.30 lakh crore demonstrates a strong commitment to addressing housing shortages and improving living standards across urban areas. This scheme is expected to invigorate the sector, create numerous job opportunities, and stimulate economic activity in related industries, promoting holistic urban development.”

Rajeev Ranjan, Co-Founder & CEO, The Mentors Real Estate Advisory Pvt Ltd:
“The approval of PMAY-U 2.0 by the Union Cabinet marks a significant advancement in addressing the housing needs of urban poor and middle-class families across India. With an ambitious target to support one crore households and an investment of ₹10 lakh crore, this scheme highlights the Government’s dedication to providing affordable housing. By focusing on affordable housing, the initiative is poised to boost demand in the sector and foster innovative housing solutions through partnerships between the public and private sectors. The scheme not only aims to enhance the quality of life for millions but also contributes to broader urban development and economic growth.”

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