Hike in rates to push affordable housing in Gurgaon, nearby cities

economictimes.indiatimes.com:

Haryana government’s affordable housing policy where the state government allots apartments constructed by developer at a fixed rate, is likely to gain traction again as the cabinet increased the allotment rates by 20%. Due to the substantial increase in the cost of raw material, developers have been demanding that the state government amend the rate as projects were becoming unviable. “The higher rates would encourage developers to undertake more affordable housing projects, increasing the supply of affordable homes.

This development brings positivity to the sector and ensures that homebuyers have access to quality housing options,” said Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd. As per the latest amendment, the rates prescribed in the policy for the hyper and high potential zone (Gurugram, Faridabad, Panchkula, Pinjore-Kalka) have been increased by Rs 800 per sq feet on carpet area over the previous rate which was Rs 4,200. For other high and medium potential towns, it has been proposed to increase Rs 700 square feet while Rs 600 per sq ft will be increased for low potential towns.

“The most impossible factor for affordable housing developer is procurement of land. The cost of land which was earlier around Rs 6 to 8 crore per acre have increased to Rs 22 to 25 crore per acre,” said Pradeep Mishra, Founder, Homents Pvt Ltd. Selling price of affordable housing when it was launched in 2013 was Rs 4000/sqft and later it was increased to Rs 4200/sqft in November 2021.