NEW DELHI: National Real Estate Development Council (NAREDCO) on Wednesday welcomed and appreciated the central government’s decision for increasing carpet areas for MIG-I and MIG-II categories under Affordable Housing’s Interest Subvention Scheme, describing the move in the right direction as it will give a big boost to the Housing for All by 2022, an ambitious initiative of the government.
In a press statement issued here today,Rajeev Talwar, Chairman, NAREDCO said, “The Middle Income Group segment to which these carpet sizes would cater to, is the biggest in the country, therefore, real estate activity is bound to experience a revival. Simultaneously, the buyers would get a wide range of real estate projects to choose from. It is a tremendously impactful decision by the Government for the real estate sector, which shall further contribute in bringing down the estimated shortage of housing in the country.”
President, NAREDCO, Niranjan Hiranandani, averred, “NAREDCO had sent in a representation to the Ministry of Housing and Urban Affairs urging to remove cap on carpet area of 120 sq.mtr. and 150 sq.mtr. for MIG 1 and MIG 2, respectively, to enable people in smaller towns to acquire bigger houses, as the cost of house in smaller town is much less in comparison to bigger cities and metros. NAREDCO is happy that their recommendations have been considered by the government and we are confident that it will create good market and growth for housing sector.”
According to Parveen Jain, Vice-Chairman, NAREDCO, “Housing cost varies from cities to cities and the cost of average residential unit in Metros and Tier-I cities is quite high whereas, in small cities, an eligible home buyer can get a bigger carpet area for his house. Home Buyers in Tier 2 and Tier 3 cities shall be the major beneficiaries.”
NAREDCO had, therefore, submitted to the government that MIG-I and MIG-II categories should be considered to be covered under Affordable Housing’s interest subvention scheme and this capping / restriction on size of the unit may be done away with as this will provide relief to MIG segment homebuyers, simultaneously kick-starting housing activity which basically would be a relief to real estate developers, as also giving a rippling impact and much needed impetus to the entire real estate market having forward and backward linkages, thereby providing a push to the economic activities in the country.