Union Budget: PMAY is Crucial for Affordable Housing
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Synopsis
The Pradhan Mantri Awas Yojana (PMAY-Urban) has made significant strides in affordable housing since 2015. As of January 2025, over 118 lakh homes have been sanctioned, with many completed. Further enhancements in PMAY are crucial for expanding access to affordable housing.
Key Takeaways
- Over 118 lakh homes sanctioned under PMAY.
- 90.22 lakh units completed so far.
- Interest subsidies play a key role in PMAY's success.
- Upcoming Union Budget announcements could impact affordable housing.
- Post-pandemic, demand for larger homes has increased.
New Delhi, Jan 28 (NationPress) The Pradhan Mantri Awas Yojana (PMAY-Urban) has shown significant advancements since its launch in mid-2015 in the realm of affordable housing. Moving forward, the application of adaptable, sustainable, and low-cost construction technologies can facilitate the swift development of extensive mass housing projects, as per a report released on Tuesday.
According to data provided by the Ministry of Housing and Urban Affairs, a total of 118.64 lakh homes have been approved as of January 20, 2025.
Approximately 90.22 lakh units have been finished, and around 112.50 lakh have been initiated. Financially, nearly Rs 200,000 crore of central assistance has already been allocated.
“PMAY should be made more accessible to a larger population, and raising awareness about it is also crucial,” stated Anuj Puri, Chairman of Anarock Group.
A key feature of PMAY is the interest subsidy on home loans, as well as direct subsidies for individual house construction or enhancement.
“Any announcements regarding Union Budget 2025-26 related to affordable housing will certainly involve PMAY. Innovative solutions and robust political commitment can elevate this essential programme back to the forefront where it belongs,” Puri added.
Nationally, the increase in prices has led to a gradual decline of luxury housing, potentially creating a turning point that could once again favor the affordable segment (homes priced under Rs 40 lakh).
Any notable announcement for the affordable housing sector in the forthcoming Union Budget could bolster the trend and provide the much-needed boost for affordable housing, as suggested by the report.
“Even if such initiatives do not spark a full-scale recovery, they can at least enhance the overall outlook for this segment. Ultimately, a thriving housing market caters to a diverse range of buyers instead of just one segment,” Puri commented.
Post-pandemic, housing demands have shifted significantly. Nowadays, Indians prefer larger and multifunctional homes that come with a wide array of lifestyle amenities.
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