We are at our 70th year of independence, and government reforms now are helping people achieve their dreams of owning a home. Earlier with unsound planning and fund shortages, it was a massive challenge of providing shelter for all. It was only in the post liberalisation period that housing got a fillip, following introduction of a housing policy in 1988 and formation of the National Housing Board (NHB) and Housing & Urban Development Corporation (HUDCO).
- The current government launched a new urban renewal mission — AMRUT, to rejuvenate 500 cities, targeting two crore urban households, with an allocation of Rs. 50,000 Crore.
- The twin missions, AMRUT & Smart Cities, were supplemented by the ‘Housing for All’ mission to build two crore urban homes.
- With liberalisation of FDI norms, massive funds started flowing in. FDI in real estate touching a record $5.7 billion in 2016.
- The other revolutionary step was to accord infra status to affordable housing.
- Today government policies are largely directed towards bringing homes within the reach of the masses.
- Implementation of RERA, has improved the buyer sentiments.
- There are mortgage reforms to provide relief to home buyers through tax incentives on interest on home loan and substantial interest subsidy of 3 per cent to 6.5 per cent on EWS, LIG and MIG homes for loans of Rs. 6 Lac to Rs. 12 Lac under the Pradhan Mantri Awas Yojana (PMAY).
Sources: Business World