Now Middle Income Group (MIG) apartments are going to have additional carpet area under the Pradhan Mantri Awas Yojana (PMAY) – Urban. Cabinet has approved the enhancement of carpet area under the MIG-I category. The carpet area has been enhanced from 90 sq mtr-120 sq mtr, while under MIG-II segment; it has been increased from 110 mtr to 150 mtr.
Carpet area is the area enclosed within the walls. This keeps out the width of the inside walls. Earlier builders used to charge for the super built-up area, which includes area of outer walls, balcony and lobbies, stairs and even lifts. Now that RERA is against the practice of super built up area and will set the measurement on the basis of the carpet area. Nevertheless, under PMAY, the area of the house is different for all the available categories and it’s the carpet area and not the super area on which the buyers will be charged for.
Union minister Ravi Shankar Prasad declared this revised measurements on a press conference. Briefing about the cabinet decision the union minister confirmed that under the MIG-I category, a 4% interest subsidy has been allotted for the beneficiaries with an annual income ranging in Rs. 6-12lacs, on a borrowed loan amount of 9 lac. Government’s decision to increase home size under Credit Linked Subsidy (CLSS) scheme will clear up unsold inventories, following by boosting up fresh market demand. Similarly, under the MIG-II category, the beneficiaries with annual income of Rs. 12 lac to 18 lac, get interest subsidy of 3% on a loan up to 12 lac.
Realtors’ bodies like CREDAI and NAREDCO are happy with this initiative taken by the government as they find the move quite favourable for the middle income group to emerge as an important investor class. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR) said, “Good news for property buyers who want to buy apartments with PMAY benefits. This is an incredible move by the government not only to push the affordable housing sector, but also to get the market a steady liquidity pool. Now, more developers will plunge into the market which would definitely usher new project launches in the current market.”
“Launch of new projects will definitely render the shortage of development under prime minister’s ambitious project –Housing for All by 2022,”- He added.
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