Revised Flat Size Norms a Major Demand Boost for Larger Homes in Tier 2, Tier 3 Cities in India..!
by Mr. Anuj Puri, Chairman - ANAROCK Property Consultants
The
housing ministry’s decision to tweak the eligibility criteria for MIG-I
and MIG-II home buyers for houses eligible for interest benefit under
PMAY is a phenomenal
move to boost sales of large-sized apartments.
As
per the revised norms, MIG-I category home buyers with household income
between ₹ 6 lakh - ₹ 12 lakh are now eligible for a subsidy for homes
up to carpet area
of 160 sq. m. from the earlier 120 sq. m.
Similarly, MIG-II category
home buyers with household income between ₹ 12 lakh - ₹ 18 lakh are also
eligible for a subsidy for homes with a carpet area of up to 200 sq. m.
from the earlier it was 150 sq. m.
This
change will have a significant impact on home sales in tier II and tier
III cities where the land costs and therefore capital values of
properties are low and
larger apartments are within the reach of such buyers.
The timing of
this increase in carpet area eligibility norms is perfect, as the RBI
recently decided to revise the housing loan limits for Priority Sector
Lending (PSL). The eligibility under PSL has been
revised from ₹ 20 lakh to ₹ 25 lakh in cities other than metros.
The
central bank and the housing ministry are evidently working more
cohesively than ever before, and it would not be an exaggeration to say
that the Government seems
laser-focused on achieving its ambitious mission of ‘Housing for All’
by 2022.
That said, while increasing the carpet area eligibility is
surely an impactful move, the Government should also consider revisions
to the interest subsidies so that homebuyers get
better financial benefits.
