In an address from the Red Fort on Independence Day, Prime Minister Narendra Modi announced the impending launch of a scheme aimed at providing relief in bank loans for individuals aspiring to own homes within urban areas. The scheme, he stated, is especially geared towards assisting weaker sections of the population without homes and middle-class families with dreams of owning their own residences.
Modi acknowledged the challenges faced by those living in cities without homes, emphasizing the need for support. He noted that the upcoming initiative is intended to benefit families residing in rented accommodations, makeshift housing, and chawls. This move comes in response to reports of escalating housing prices in metropolitan cities, underlining the government’s commitment to addressing housing-related concerns.
A recent report by CREDAI and Colliers Liases Foras highlighted a 7 percent year-on-year rise in housing prices across India’s top eight cities. This increase was attributed to strong housing demand, positive homebuyer sentiment, and stable interest rates. The report also revealed a consistent upward trend in housing prices over the past 10 quarters, primarily driven by robust demand.
An additional report from the Anarock Group shed light on the struggles faced by affordable housing in the wake of the Covid-19 pandemic. Unlike other segments, affordable housing has not rebounded over the last two years due to reduced purchase decisions by buyers. Consequently, affordable housing sales have dwindled, leading developers to curtail supply. The report disclosed that the share of affordable housing in overall sales during the first half of 2023 contracted to 20 percent, reflecting an 11 percent decline compared to the same period in 2022.
PM Modi underscored the significant strides made in improving the economic status of millions. He stated that over the past five years, more than 13.5 crore individuals transitioned from poverty to the neo-middle and middle classes. He assured the public that every effort and rupee of the government is dedicated to citizen welfare. Additionally, Modi expressed his optimism about India’s economic trajectory, affirming his commitment to positioning the country among the top three global economies within the next five years.
It’s important to note that the Pradhan Mantri Awas Yojana – Urban (PMAY-U), a flagship initiative of the central government, was launched by PM Modi on June 25, 2015. Implemented by the Ministry of Housing and Urban Affairs, the PMAY-U has sanctioned approximately 1.18 crore dwellings and distributed 76.02 lakh homes to beneficiaries as of July 31 this year.