Affordable housing scheme gets maximum response from Gurgaon

Of the 56 applications the Haryana government recieved from builders for the construction of housing projects under its Affordable Housing Policy, 48 are from Gurgaon.

The state government notified the policy on Monday and invited developers to apply for the scheme, which aims at providing affordable housing units to persons belonging to economically weaker sections.

On the very first day, 56 realtors submitted their applications. The huge response from Gurgaon builders indicates that there’s a huge demand for affordable houses in the city.

Of the rest, six applications were received from developers in Faridabad and one from Jhajjar and Karnal each.

According to experts, the policy would help checking illegal constructions and also act as a breather for the otherwise sluggish real estate market.

“The policy will rekindle hope for the common man, as it has a provision for higher population density norms of 850-900 people per acre as against the prevalent figure of 300,” said National Real Estate Development Council (NAREDCO) president Navin Raheja.

The policy was cleared by the Haryana cabinet on August 6 during a meeting held by chief minister Bhupinder Singh Hooda in Chandigarh.

For a city like Gurgaon where a two-bedroom apartment sells for anywhere between Rs. 75 lakh and Rs. 1 crore, the new policy has brought a ray of hope for people of low income groups as they would be able to buy a 300 sqft house for as low as Rs. 12 lakh through draw of lots. The price for a 645 sqft flat would come to about Rs. 25 lakh.

As per its terms and conditions, the policy allows developers to construct and sell small housing units — measuring between 300 sqft and 645 sqft — in the economically weaker section (EWS) and low income group (LIG) category.

The maximum allotment rate for the apartment units approved under such projects will be — Rs. 4,000 per sqft of carpet area in Gurgaon, Fairdabad, Panchkula and Pinjore-Kalka; Rs. 3,600 per sqft for other high and medium potential towns and Rs. 3,000 per sqft for the remaining low potential towns.

News Source: http://www.hindustantimes.com/india-news/gurgaon/affordable-housing-scheme-gets-maximum-response-from-gurgaon/article1-1110615.aspx