The PM's Pradhan Mantri Awas Yojana
will lead to more demand for affordable projects in Pune. Prime Minister Modi's
vision to create housing for all by 2022 has been initiated with policy
initiatives and is also supported by budgetary initiatives such as the labeling
of affordable housing as infrastructure. Within India, the real estate sector
is the second largest employer after agriculture and the real estate sector is
expected to expand by 30 percent by the end of the next decade. However
currently the realestate in India has
been facing challenges such as unpredictable cash flows, low sales volume,
delayed completion timelines, and a higher rate of interest charged by banks on
loans to builders.
The Pradhan Mantri Awas Yojana
The PMAY provides a reason to cheer
as it is expected to create demand for housing in India and will lead to the
fulfillment of the housing shortage in the country; particularly in meeting
demand for affordable housing in India.
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PMAY, Affordable Housing, and Builders
Under the module laid out by the
PMAY, the carpet area of houses that are being created for the Economically
Weaker Sections is to be 30 square meters while the carpet area of houses for
Low Income Groups is to be 60 square meters. The carpet area of houses for MIG
1 and 2 is to be 90 and 120 square meters respectively. Within the four
metropolitan cities a carpet area of 30 square meters has been capped for
houses while in the peripheral regions of cities this area for houses has been
increased to 60 square meters.
Builders
and developers in Pune and those across India who construct affordable
housing will be exempt from paying tax on profits from such properties for a
period of five years from the current exemption period of three years.
Housing in Pune
Nearly eighty percent of the housing
demand in Pune comes from lower income group and middle income group
households. In Pune the major driver for housing is job creation which in turn
is supported by strong industrial growth in Pune in locations such as Chakan,
Talegaon, Ranjangaon, all three of which have industries present operating
under the aegis of the Maharashtra Industrial Development Corporation (MIDC).
The professionals who are employed in these industries are the ideal customers
of builders in the city.
Individuals who work in Pune in the
IT and ITES companies in clerical profiles are the best suited to benefit from
the PMAY scheme in Pune. Additionally those employed as taxi drivers and small
traders would also benefit from the scheme mentioned and will be able to buy
property in Pune.