PMAYThe granting of infrastructure status of affordable housing segment is going to not only increase the demand in the real estate sector but will also give a thrust in the housing loans.

The benefits of the PMAY (Pradhan Mantri Awas Yojna) Scheme initiatives which the government has taken recently will be more for the low income group than the middle income group. The affordable housing segment being improved will act as a big factor in increasing the demand for housing. If the developers want to maintain the demand they need to innovative like offering lower ticket sizes in housing units. Housing Finance Companies (HFC) need to lay their concentration on loans of sub Rs.20 lakh.

The credit-linked subsidy scheme (CLSS), under one of the benefits of Prime Minister Aawas

Yojana (PMAY), is going to help in decreasing the returns on home or will offer discount of 2-10% on purchase of new property.

CLSS under the benefits of PMAY cannot act as a one-man army for achieving housing for all. Other factors like employment opportunities or improvement in affordable housing will major impact on housing for all.

Infrastructure status of affordable housing will play a key role in the vision of housing for all by 2022. Known as Modi’s key project, PMAY has been pushed by the government to provide 20 million houses across the country by 2020. The main aim of the government will be to provide affordable housing in rural areas.