Affordable Housing Rates Revised to ₹5000 per sq ft

 

In an effort to save the industry, the Haryana government raised the prices for affordable housing units by an average of 20%. However, experts in housing say that it can result in a rise in the cost of inexpensive homes and make them less accessible to the average person.

Rates in Faridabad and Gurgaon have gone up from 4,200 to 5,000 per square foot. While acknowledging this, developers also warned that it might drive up the cost of entry-level housing.

To resurrect the affordable housing sector in Haryana, the Haryana government hiked affordable housing tariffs of affordable developments under affordable housing groups on last Friday by an average of 20%.

The affordable rates in two Haryana areas with growth potential—Gurugram and Faridabad—have gone up from 4,200 to 5,000 per square foot.

Manohar Lal Khattar, the chief minister of Haryana, made this choice during a meeting of the cabinet on Friday.

The move to increase the prices was hailed by a number of Gurgaon developers who argued that it would revive the flagging demand for affordable housing. Some housing experts, however, predict that the price increase will make homes more accessible.

On August 19, 2013, the Department of Town and Country Planning (DTCP) released the affordable housing policy.

Balcony Rates Revised to ₹1,200 per sq ft

In order to allow developers to recoup the increased construction costs through an increase in balcony fees, the government also announced that, following the amendments, balcony rates will increase by 200 square feet, to 1,200 per square foot.

On the other hand, the developer welcomed the rate rise and stated that it will help them manage the projects as input prices had significantly increased.

Chairmen & Founder of Signature Group Stated

Pradeep Agarwal, Chairman & Founder of Signature Group, claimed that without a rise in affordable prices, affordable housing developments would no longer be financially viable. Cement, bricks, steel, and other components have all seen major price increases in recent years.

More importantly, the rise in land and material prices makes it unprofitable to begin affordable projects at a lower cost. He said that this is a wise move that would expand the market for inexpensive items.