The government’s decision to raise the affordable housing unit value cap to ₹45 lakh has sparked debate. While intended to widen eligibility, experts argue the threshold fails to reflect urban realities, risks excluding genuine beneficiaries, and may distort housing demand. Revisiting the cap is crucial for balanced housing policy.
India’s affordable housing policy recently revised the unit value cap to ₹45 lakh, aiming to expand access for homebuyers. However, industry experts and urban planners believe this benchmark requires urgent reconsideration. Rising property prices in metros and Tier-1 cities mean that the cap may not adequately serve its intended purpose.
Key Highlights
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Urban Price Mismatch: In cities like Mumbai, Delhi, and Bengaluru, even modest homes exceed ₹45 lakh, leaving many middle-income families outside the affordable housing bracket.
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Beneficiary Exclusion: The cap risks excluding genuine first-time buyers who need support, while benefiting developers in lower-cost regions disproportionately.
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Market Distortion: Artificially low thresholds may skew demand toward smaller units, discouraging developers from building larger, family-friendly homes under affordable schemes.
Experts suggest a city-specific cap system or periodic revisions linked to property price indices to ensure inclusivity. Revisiting the ₹45 lakh limit is essential to align affordable housing with India’s diverse urban realities and to truly empower aspiring homeowners.
Sources: Economic Times, Business Standard, Mint