The Haryana Cabinet has approved amendments to the Affordable Housing Policy-2013, leading to a 20% increase in the allotment rates for apartments in the affordable group housing (AGH) category. The decision aims to revitalise the affordable housing sector in Haryana and address the rising materials. The revised rates, applicable to different zones, will encourage developers to undertake new projects and ensure the viability of affordable housing initiatives.
Increase in Allotment Rates:
The Haryana Cabinet’s decision to increase allotment rates aims to boost the affordable housing sector. In the “hyper and high potential zone” encompassing cities like Gurugram, Faridabad, Panchkula, and Pinjore-Kalka, the rates have been raised by Rs 800 per square foot on the carpet area, from Rs 4,200 to Rs 5,000. For “high and medium potential towns,” the rates have been increased by Rs 700 per square foot on the carpet area. Similarly, for “low potential towns,” the allotment rates have been hiked by Rs 600 per square foot. The revised rates will be applicable to all pending licenses.
Implications of the Rate Hike:
Developers have welcomed the increase in allotment rates, as it allows them to recover the rising costs of construction materials. The hike in balcony rates by Rs 200 per square foot to Rs 1,200 per square foot enables developers to cover the necessary construction expenses through balcony sales. However, experts have expressed concerns that the steep price hike may make affordable housing unaffordable for the common people, potentially limiting the accessibility of affordable homes.
Strengthening the Affordable Housing Policy:
The Affordable Housing Policy-2013, introduced by the Haryana government, plays a crucial role in encouraging the planning and completion of group housing projects. The amendments in the policy, including the increase in allotment rates, are aimed at ensuring the viability of affordable housing initiatives and meeting the housing needs of deserving beneficiaries.
Conclusion:
The Haryana Cabinet’s decision to increase allotment rates for affordable group housing underlines the government’s commitment to revitalizing the affordable housing sector. While the rate hike is expected to boost developers’ confidence and encourage the construction of new affordable housing projects, there are concerns about the potential impact on housing affordability. It is crucial for the government to strike a balance between addressing rising construction costs and ensuring that remains accessible to all segments of society.
