The second tranche of the government’s Rs 20 lakh crore economic package was unleashed for the benefit of migrant workers, traders, farmers and street vendors – and there was a real estate takeaway. In a big move, the government has announced the one-year extension of the CLSS scheme up to March 2021. This will help push demand for affordable housing.
In a big move, Finance Minister Nirmala Sitharaman announced the one-year extension of the Credit Linked Subsidy Scheme up to March 2021, which will help push the demand for affordable housing. Ever since its implementation in 2017, the CLSS scheme has already benefitted over 3.3 lakh families and the extension will further aid many more families to avail housing under this scheme. As a ripple effect of increased demand for affordable housing, it will positively push demand for raw materials like cement, steel, transport and other construction materials.
Anuj Puri, Chairman, ANAROCK Property Consultants, said, “The government’s push for affordable housing has been unmistakeable in the last six years. Its Housing for All by 2022 project has already resulted in multiple sops and incentives. As a consequence, there has been a significant increase in activity in affordable segment over the last few years. As per ANAROCK research, there are currently 15.62 lakh under construction units across the top 7 cities, of which nearly 39% are in the affordable segment priced <INR 40 lakh budget.”
Dr Niranjan Hiranandani, President, ASSOCHAM and NAREDCO, says, “Extension of the Credit-Linked Subsidy Scheme (CLSS) till March 2021 as also a rental housing scheme for urban poor and migrant labor in cities under PMAY were the takeaways for real estate on Day 2 of the announcements that throws light on the stimulus package.” “The extension of CLSS should see demand for another 2.5 lakh affordable homes, which should create demand for construction material as also provides jobs. The rental housing scheme under PMAY offers a business opportunity to the private sector, to build more rental housing stock through the PPP mode, with a concessionaire arrangement. The Finance Minister focused on moves that will improve working conditions, making life easier and more conducive for workers. Most of these were largely through changes in codes, rules and regulations; rather than direct liquidity, monetary or fiscal help.”
Mohit Goel, CEO, Omaxe Ltd adds, “The extension CLSS scheme by one more year along with extended project completion timeline will help in addressing both demand and supply side issues, hence, augurs well for the sector. With little more help in form of lower GST & Stamp duty, the real sector will be up and running soon.”
Pradeep Aggarwal, Founder & Chairman, Signature Global and & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, said, “In the last couple of years, the subsidy of upto Rs 2.67 lakh under Credit Linked Subsidy Scheme has been one of the biggest catalysts for home buyers, particularly for affordable housing in tier II & III cities. With property prices remaining stable, the extension will prompt more people particularly mid-income group to buy homes.”
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com said, “The extension of the Credit Link Subsidy Scheme by one year will prompt many of the fence sitters to buy homes at the earliest and thereby increase demand for affordable housing wherein industry has max unsold inventory across the country. This will also help sustain employment as real estate supports close to 200 allied industries. The proposed affordable rental housing under PPP is a welcome step. This will help in effectively tackling any migrant labourers issues in the future.”
Prateek Mittal, Executive Director, Sushma Group, said, “Yesterday’s announcement by the finance minister was to ease the liquidity in the real estate sector and delay stress for the supply side, and today the government by extending the PMAY-CLSS scheme for MIG, has boosted the demand side as well. This comprehensive approach will go a long way to catapult the sector.”
Uddhav Poddar, MD, Bhumika Group, said, “The extension of CLSS by one year will definitely benefit the affordable housing segment, which is a key demand driver within the real estate sector. Also the announcement by the Hon’ble Finance Minister of a scheme for affordable rental housing for migrant workers by converting government-funded housing in cities into Affordable Rental Housing Complexes (ARHC) under PPP mode through concessionaire is interesting and we look forward to more details of the same.”
According to Harvinder Sikka, MD, Sikka Group, “The recent announcement pertaining to extension of CLSS up to another year, has benefitted the MIG, and affordable housing sector. The extension welcomes investors and end-users with their share of investments. Affordable housing being a major job provider, will also be able to create more jobs with the government’s proposal related to the change in outlook of the government housing complexes in cities to affordable rental housing complexes.”
Vikas Garg, Deputy Managing Director, MRG World, said, “Focus of the government is on providing housing to everyone in the country. The latest announcement by the FM in the wake of the pandemic also shows that government want people to buy houses and this can be achieved by this announcement as fence sitters too will come and buy.”