Over 2 crore affordable houses to be built in three years
The government said on Tuesday that a universal affordable housing scheme will give a big boost to the construction industry as 1.2 crore dwellings will be built in three years under PMAY's urban component and another 1.02 crore units under its rural component by March 2019.
 
"The universal affordable housing for all will give a big boost to the construction industry," Finance Secretary Ashok Lavasa told the media in the presence of Finance Minister Arun Jaitley after a Union Cabinet meeting here.
 
Lavasa said 1.2 crore units under the Pradhan Mantri Awas Yojana or PMAY (Urban) would entail an expenditure of Rs 1,85,069 crore in three years. 
 
He said under PMAY (Gramin) 1.02 crore units would be built at a cost of Rs 1,26,795 crore by the Centre and states by March 2019. Lavasa said 51 lakh units will be built this year. 
 
The government last month announced a new PPP (Private Public Partnership) Policy for Affordable Housing that allows extending central assistance of up to Rs 2.50 lakh per house to be built by private builders even on private land, besides opening up immense potential for private investments in affordable housing projects on government land in urban areas. 
 
The government had launched "Housing for All" in rural areas in November 2016 under which the government proposes to provide an environment friendly and secure house to every rural household by 2022. 
 
The government had in June 2015 given its approval for "Housing for All by 2022" for urban areas which provided for rehabilitation of slum dwellers, promotion of affordable housing for weaker sections through credit-linked subsidy and subsidy for beneficiary-led individual house construction or enhancement. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    DrSatish Kumar

    3 years ago

    Improving rural infrastructure along with healthcare and education is high priority.

    Vijay Dadoo

    3 years ago

    Excellent move by Government. Are the houses being planned in single floor or multiple floors? If they all are on ground floor and single floor, the extraordinary amount of land required may taker away the land which is available for agriculture, growing vegetables, making schools, making parks, making roads or making industry etc.
    In the writer's views, the houses should be multistory, in cities 5 to 15 floors, in villages around five floors. This will save on the land. Today, in any house, whether small or big, the maximum cost is that of land. The other advantages of multiple floor houses are less cost of construction, less encroachment etc.

    REPLY

    ankit

    In Reply to Vijay Dadoo 3 years ago

    Its not a move, its an announcement.

    Vijay Dadoo

    In Reply to ankit 3 years ago

    Right Sir, but magnitude of the things should be considered right at the time of inception.

    Gopalakrishnan T V

    3 years ago

    Many things have been said but one has to wait and see for the results. Going by the fast three years , nothing good has happened to the lower and middle middle class and the way the tax policies are introduced, the people by and large are losing their incomes and hopes and their trust in Government is fading fast.

    Festive cheer eludes realty sector
    Much against the expectations of the real estate sector, this year's festive season is turning out to be somewhat disappointing for property developers as aspiring home buyers are extra cautious about investments in the backdrop of the slowing economy and unstable realty sector, hit by the short-term impact of the Real Estate Regulation Act (RERA) and the Goods & Services Tax (GST).
     
    Capital-starved property developers, sitting on huge unsold inventories of residential real estate, had been banking heavily on this year's festive season to push sales and cut down their inventories. Their optimism stemmed from the fact that property rates have bottomed out and the home loan interest rate has touched a six-year year low of 8.35 per cent and that the enactment of RERA, which empowers and protects consumers, would boost the sentiments of home buyers. 
     
    Buoyed by all this, developers had lined up the best of bargains, with attractive deals and discounts that include free modular kitchens, free club membership, free car parking, no GST and no maintenance charges, no EMI till possession and waiver of stamp duty & registration fee. So much so that developers were quoting all-inclusive pricing and giving their track record of delivery to win the confidence of buyers.
     
    But, unlike in the past, when prospective property buyers eagerly waited for the festive sales, this year, the charm of the season has somewhat diminished as months before its onset, developers and real estate marketing companies had been holding property festivals/shows and offering handsome bargains to liquidate their unsold inventories. This, according to the latest industry statistics,stands close to four years, with the NCR topping with an inventory of 58 months. 
     
    Also, unlike the past trend, this festive season did not have new offerings to attract home buyers as developers were focusing on completing and delivering ongoing projects rather than launching new ones. Moreover, in the backdrop of large-scale delivery defaults, home buyers are very much concerned about the safety of their investment. This is clearly reflected in the distinct trend of buyers increasingly opting for ready-to-move homes to avoid development risks. That, however, is not contributing to big sale numbers as the ready-to-move inventory is limited.
     
    The unfavourable employment scenario is also playing spoilsport. With disposable income going down, the cautious and more discernible buyers are looking at fundamentals of property to assess the safety and viability of their investment. Home buyers are now not simply swayed by freebies as home buying has now become need/choice based and buyers are more sensible to judge if the offers are both beneficial and fit into the their scheme of things.
     
    Today's property buyer is also aware about taking an informed decision to buy a home after clearly judging the pros and cons of buying and renting. In a slowing economy, renting makes better sense from the point of view of cost benefits. Despite the fact that property prices have stagnated/declined and home loan rates are much lower, buying is still a costlier option as the EMI is much higher than the monthly rent and, in case of construction delays, one is burdened by both rent and EMI. Also, in the current market scenario, it is not a profitable proposition for investors to buy residential property as its appreciation is too low and even rental yield is hardly half of the global yield of 5-8 percent. Moreover, the Noida controversy over the non-delivery of flats to about 100,000 home buyers, even years after the promised delivery date, has badly shaken the confidence of prospective home buyers, making them much more prudent about investing in property.
     
    Clearly, in this backdrop of lack of transparency and fairplay in real estate transactions, the trend of household savings shifting from physical (real estate and gold) to financial assets (equity, MF) has been catching up. This trend has been more visible after demonetisation and the digitalisation of economy. This is reflected in the recent spurt in investments in the stock market and mutual funds. Equity MF inflows tripled to Rs 80,000 crore in April-September FY18, with the asset base jumping 25 per cent from Rs 5.43 lakh crore in March 2017 to Rs 6.59 lakh crore in September 2017.
     
    Low interest rates are having a positive impact on equity investments, especially in view of low investments in fixed deposits. The equity markets have attracted a record Rs 2.15 lakh crore of cumulative investments over the past three years (FYs 15-17) and the trend continues as real estate stocks have been performing well with BSE Realty Index gaining 40.2 percent over past one year. Morgan Stanley data shows that in terms of post tax returns (CAGR) of different asset classes over the medium (five years) and long (10 years) terms, equity scores over other asset classes.It posts returns of 11 per cent and 17 per cent respectively, compared to property (8 per cent & 13.4 per cent), Gold (9 per cent & 12.9 per cent) and FDs (5.7 & 5.2 per cent).
     
    Notwithstanding this dull scenario, there is one noticeable change this time. Unlike last year, end-users are out in large numbers to explore the market for the ready-to-move affordable and mid segments. And in the coming months, as RERA & GST settle in, affordable housing, with greater policy support from the government, will lead the recovery of residential real estate.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Aroon Purie hands over baton of India Today to daughter Kalli
    Aroon Purie, who headed the India Today group for 42 years on Tuesday decided to handover the baton to his daughter Kalli Purie, who has been appointed as vice chairman of the group. Except the Group Editorial Director for Publishing and Group Chief Financial Officer, all others would now be reporting to Ms Purie, instead of Mr Purie.
     
    In an internal communication, Mr Purie says, "I would now like to spend my time on strategic steering of the Group and exploring new opportunities...All those who reported to me will no report to VC. In the new order, the Group CFO and the new Group CEO, when appointed, will report to the Vice Chairperson."
     
     
    Here is the mail sent by Mr Purie....
     
     
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