PMAY Housing gets 33% carpet area push

In a quest to bring more beneficiaries under its fold and achieve the target of 'housing for all' by 2022, Central government has increased the carpet area of houses eligible for interest benefit under the PM Awas Yojna (PMAY) for the middle-income group or MIG by 33%. The initiative implies that households with an annual income of up to ₹18 lakh can now avail themselves of ₹2.3 lakh upfront subsidy for a house measuring up to 2,100 sq.ft. Households with income from ₹6-12 lakh fall within the MIG-1 category, while those with income between ₹12-18 lakh qualify as MIG-2. Up till now, houses with a carpet area up to 120 sq.m. (1.291 sq.ft) for MIG-I and up to 150 sq.m. (1.614 sq.ft) for MIG-II were eligible for interest subsidy. They have been increased to 160 sq. m. (1,722 sq.ft) and 200 sq.m. (2,153 sq.ft), respectively. MIG-1 and MIG-2 are the segments that need maximum government support to access housing within their budget and this move will allow inclusion of a wider geographic and demographic pool of buyers across the country, said an expert, elaborating that decision to increase the carpet area for interest benefit under the credit linked subsidy scheme is yet another step in the direction of expanding the beneficiary base for government schemes to promote the housing sector, he insisted. Commenting on the change Chairman of Anarock Property Consultants, Anuj Puri, said that the newest initiative will have a significant impact on home sales in tier II and tier III cities where the land costs is a bit lower therefore capital values of properties are low and larger apartments are within the reach of such buyers. Timing of this increase in carpet area eligibility norms is perfect, as the RBI has decided to revise the housing loan limits for priority sector lending from ₹20 lakh to ₹25 lakh in cities other than metros.