The first ever female finance minister Nirmala Sitharaman in the recent Budget 2019 announced that various reforms will be certainly undertaken for the promotion of rental housing. The continued thrust for affordable housing will benefit millions of the people staying in the different corners of the nation in rented homes.
She further added that the time limit for the completion
of the housing project has been reduced from 314 days in the year 2015-16 to
114 days in 2017-18 assuming it as an achievement of her government. These
houses will have the essential amenities like electricity, toilets, LPG, and
The finance minister Nirmala Sitharaman also said that the prevailing rental laws are antiquated and so several productive improvements will be implemented with the aim of promoting rental housing.
The Budget 2019 will Boost Affordable Housing
According to IMF, the Indian rental market which is highly unorganized is estimated to be $ 20 billion approximately. The recent budget will help to streamline it.
PSUs to be used to construct public infrastructure on large basis to facilitate affordable housing.
In order to achieve the set goal of ‘Housing for All’ by 2022, the FM Nirmala Sitharaman said that the govt. is in the process of introducing a new and successful tenancy law which will boost the unorganized rental housing market in the country.
Sitharaman said, “Current rental laws are archaic
and do not address the relationship between the lessor and the lessee realistically
The Modi govt is constantly making efforts to
increase the carpet area and encourage more people to take the advantage of
affordable housing under the Pradhan Mantri Awas Yojana (PMAY) run countrywide.
Under the PMAY, Credit Linked Subsidy Scheme
(CLSS) has helped in increasing the percentage of the beneficiaries by
redefining the income definitions and expanding the carpet area for the
constructed affordable housing.
Maan, Senior Associate Director at Colliers International India said, “The new
model tenancy, which is likely to be re-introduced, is expected to balance the
rights and responsibilities of both landlords and tenants that will make the
rental market more efficient and streamlined across the country.”
The government in the Budget 2019 has also facilitated
additional incentives to boost affordable housing.
An interest deduction up to ₹3.5 lakh for affordable housing priced below ₹45 lakh as against ₹2 lakh earlier for
loans availed until March 31, 2020 has been proposed. It can encourage more first-time homebuyers and
increase the demand of affordable housing.
also said, “Under the ‘House for All by 2022’ mission, the government aims to
build 1.95 crore houses under the Pradhan Mantri Awaas Yojana (Gramin) scheme.
“A total of 1.54 crore rural homes have been completed in the last five years.”