Steps Taken by the Government to Boost Affordable Housing in India



India is going through a severe housing crisis. Around 28% of city dwellers live in rented houses across the nation while almost 0.15% of the total population of India live in metropolitan areas outside any proper residential unit. In Tier-1 cities like Delhi, this number can reach astonishing figures, approximately 3 million, according to recent census.

While homelessness is not as rampant in rural areas, brick and mortar houses are rare as well. Roughly 116 million temporary houses of thatched or tiled roof are in use across the country.

To mitigate this issue, the Government of India has taken multiple initiatives to provide affordable housing to all citizens of the country. Towards that aim, numerous schemes have been launched which provide cheaper housing as well as subsidised rates of interest for financing living quarters. Under these initiatives, individuals can build their own house or avail government build accommodations with the help of economical home loans from different financial institutions.

Let’s take a look at three of the most effective initiatives are discussed below.


Initiated in 2015 by the Prime Minister of India, the Pradhan Mantri Awas Yojana (PMAY) scheme primarily provides subsidies to economically weaker sections (EWS) of the community along with lower and middle income groups (LIG and MIG respectively).

Crucial to note, only first time home buyers can apply for this scheme. Additionally, no close family member of the applicant can be the owner of a house either. The key benefits of the Pradhan Mantri Awas Yojana (PMAY) are listed underneath; these are some of the measures that the Government of India is taking to promote it.

  • Subsidised rates of interest for every individual availing housing loan under PMAY. This rate of subsidy stands at 6.5% for EWS and LIG individuals. In case of MIG citizens, there are 2 categories with 3% and 4% subsidy rates depending on the exact income group they come under.
  • The government also intends to construct 2 Crore houses in urban sectors for those eligible under this scheme.
  • Under Government housing scheme of PMAY has a mandatory clause of women ownership, thereby safeguarding the lives of numerous underprivileged women.


RERA or Real Estate Regulatory Authority is a body created by the Government of India to introduce a transparent real estate industry. This scheme aims to provide economical housing to people along with accountability of the promoters and builders. The benefits first time home buyers can enjoy with RERA in action are discussed below.

  • Registration being a must for every builders of real estate, this initiative aims to reduce delay and sell related malpractices.
  • Divided into multiple committees for different sections of the country, a more detailed overlooking is enforced.
  • These norms encompass both residential and commercial buildings.
  • It protects buyers as well as sellers from any malpractice or fraud.

Bangalore Housing Scheme:

Initiated by the Bangalore Development Authority (BDA), Bangalore Housing Scheme targets to provide affordable housing to citizens in various locations across the city. The allotments of these houses are based on the BDA Allotment of Site Rule of 1984. Individuals applying under this initiative must be citizens of Karnataka and not avail any other government aided initiative. Its key features are the following –

  • Apartments which are 1 BHK/2 BHK/3 BHK will be granted to all the beneficiaries of this scheme.
  • Applicants with total family income under Rs. 3 Lakh per annum will be the prime beneficiary of this initiative.
  • While applicants should be at least 18 years of age are usually granted, in special instances 15 year olds can be the beneficiary too.

The government of India targets to build 20 Million houses by March of 2022 as a part of its affordable housing initiative. Consequently, with all the benefits mentioned above, households hoping to build their own home can avail residential property at much cheaper rates.

Leave a Reply

Your email address will not be published. Required fields are marked *