According to this property website, the government’s ambitious plan to provide housing for all of the urban poor means that 4 million houses will need to be built every year over the next five years. The government’s plan to house millions of Indians living in urban regions of India is an ambitious one and the PMAY is a laudable act, however, its impact thus far has been largely felt only on paper.
Reasons for Complain
Between June of 2015 and 2016, only one thousand six hundred and twenty-three homes had been constructed for the urban poor in urban regions of India. By the time the “Housing for All” slogan was one year old, only 700,000 thousand homes had been sanctioned on paper. As stated earlier this property website believes that to comply with the target of the PMAY, nearly 4,000,000 houses need to be ready by 2022 while on paper less than one-fifth the number of such homes have been sanctioned.
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Consider the Builders Viewpoint
Those familiar with the situation have stated the goal of providing property in India to the urban poor at the largest and liveliest Indian cities is difficult to accomplish. Because the PMAY relies on private players who in the end are driven by the profit motive, the building of affordable properties in cities such as Mumbai, Chennai, and New Delhi is difficult to do profitably because the government is expected to fund such projects only up to 1.5 lakh rupees per unit. Affordable realestate in India at the largest cities simply cannot be priced as low as mentioned and hence to attempt to do so is hugely unprofitable for builders.
One Size Does Not Fit All
In cities in Gujarat and Chattisgarh homes were built by collaboration between private players who reserved thirty-five percent of their project and upon this region built 250 square foot homes. These 250 square foot homes were then offered to Economically Weaker Sections (EWS) at a 1.5 lakh subsidy. However, where the property in India at the largest cities is concerned, a 1.5 lakh subsidy is worth very little.
Not Affordable Enough
While the tag affordable has been granted to affordable property, it seems that many such properties in India are not yet affordable enough. The measures taken by the government to subsidise such properties and the lower interest charged by banks are not enough, according to this real estate website, to propel sales of such properties.