Budget 2025: PMAY's Role in Shaping Affordable Housing's Future
Since its launch mid-2015, Pradhan Mantri Awas Yojana (PMAY-Urban) has remained on track and has proven successful in ensuring affordable housing for all Indians. As of January 20, 2025, Ministry of Housing and Urban Affairs have informed that 118.64 lakh homes have been sanctioned under this scheme, and nearly 90.22 lakh units are already completed with around 112.50 lakh grounded. The central government had already pledged around Rs 200,000 crore financial support for these projects.
Anuj Puri is the chairman of Anarock Group and pointed out the need to make PMAY more accessible and to increase public awareness. He pointed out that the benefits from schemes such as interest subsidies on home loans and direct assistance on individual house construction or enhancement. "Any announcements in the Union Budget 2025-26 related to affordable housing will no doubt revolve around PMAY. With innovative solutions and firm political intent, the scheme could regain its limelight", said Puri.
As housing prices continue to go up, the luxury housing segment is slowly beginning to slow down, which may prove to be a turning point for the affordable housing market. Demand is likely to shift towards units priced below Rs 40 lakh. This trend is expected to gain momentum if the upcoming Union Budget places substantial focus on the affordable housing sector and provides this segment with a much-needed fillip.
Added Puri, "Though measures may not completely revive the segment, it would enhance its prospect. A healthy housing market caters to a bouquet of buyers rather than one segment. There is visible change in preferences post-pandemic, when there is huge demand for larger houses with multi-functional spaces and every kind of lifestyle amenity that's included inside". The approach taken by the Union Budget to affordable housing might play a significant role in changing the face of the real estate market.
