First Large Scale Private Investment in Affordable Housing


Cost of construction in range of Rs.15-30 lakh per house
Cost of construction in range of Rs.15-30 lakh per house
Highlights
  1. CREDAI members to invest Rs.38,000 cr to build 2 lakh affordable houses
  2. Venkaiah Naidu launches 352 housing projects in 53 cities

Now members of Confederation of Real Estate Developers’ Associations of India (CREDAI), a body of private real estate developers will build over two lakh houses in 53 cities with an investment of Rs 38,000 crores. The average construction cost of these affordable houses has been pegged at Rs 18 lakh per house. 

The initiative will involve development of over 8.60 crore sq ft of land to develop the 375 housing projects.

“We are all set to embark on a journey of a ‘Naya Daur’ for the real estate industry against the backdrop of introduction of various policy reforms which are aimed at facilitating growth. This presents a huge opportunity not just for our members or our industry, but for the nation itself. India has a recorded shortage of 20 million homes and our endeavor is to ensure that we overcome this shortage by placing consumers at the center of all our efforts. Our 375 housing schemes will realize the dreams of millions of Indians who are waiting to own a house.” Jaxay Shah, President, CREDAI said.

Minister of Housing and Urban Development Venkaiah Naidu launched the initiative at the Investiture Ceremony of CREDAI’s new team. The event was held in Gandhinagar. 

Naidu said that within a short span of just 21 months since the launch of Pradhan Mantri Awas Yojana (PMAY) Urban in June, 2015, his Ministry has approved construction of 17.73 lakh affordable houses for urban poor with an investment of Rs 95,660 crore in 30 states and Union Territories.. An amount of Rs 27,879 crore has also been approved towards construction cost. 

These approved projects will be executed with assistance from central and state governments and beneficiary contribution under the four components of PMAY (Urban). Under this urban housing mission, central assistance in the range of Rs 1-2.35 lakh will be provided to each beneficiary. 

Government also extended the Credit Linked Subsidy Scheme component of PMAY (Urban) to Middle Income Groups with annual incomes in the range of Rs 12 lakh to Rs 18 lakh under which interest subsidy of 4% and 3% on housing loans will be provided. With this, beneficiaries belonging to EWS, LIG and MIG with annual incomes up to Rs.18 lakh have been brought under the ambit of PMAY (Urban) opening up substantial investment opportunities for developers both at the bottom and middle of the pyramid.

Naidu congratulated CREDAI for coming forward to invest in affordable housing projects and assured them that his Ministry and Central Nodal Agencies like the National Housing Bank and HUDCO will extend full cooperation in reaching the benefits prescribed under PMAY (Urban) to the beneficiaries who join the projects launched today.

In the event Jaxay Shah took over as the new President of CREDAI from outgoing President Gitambar Anand.

3,271 thoughts on “First Large Scale Private Investment in Affordable Housing

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