The nation is looking at affordable housing. In tune with the trend, the government has approved a 33 percent increase in carpet area of houses eligible for interest subsidy under Pradhan Mantri Awas Yojana-Urban (PMAY-U). Let’s delve deeper to know more.

What is it exactly?
The statement covers two sections – Middle Income Group I (MIG I) and MIG II.
For MIG I, i.e. for families with household income between Rs 600,000 and Rs 1,200,000 the carpet area is raised from “up to 120 square metre" to "up to 160 square metre"
For MIG II families with annual income between Rs 1,200,000 and Rs 1,800,000, it has been raised from "up to 150 square metre" to "up to 200 square metre".

Who will benefit from it?
The new rules will empower MIG customers to qualify for subsidy and enjoy the benefits offered under PMAY-U. With ample properties available as large units, tier III and tier IV cities are more likely to benefit from the decision. Add to it the lower housing cost of these cities!

Are these the game changers of small towns?
The focus of the new norms is more on the smaller towns of India. In the recent years, it is proven that these cities are emerging as the economic power centres fuelled by low and middle income groups. The evergreen domestic economy is observed to be vibrant – regardless of the global economic conditions. Moreover, the boost in carpet area will increase construction activity; which in turn will give a powerful push to the housing sector.

So, with these novel updates from the government in the housing sector, it’s time to focus on the blueprints of your dream home.