Government announces new affordable housing scheme for urban areas

The Ministry of Housing and Urban Affairs has announced a new affordable housing scheme specifically targeting urban areas across India. The scheme, named "Housing for All Urban 2025", aims to facilitate the construction of over 1.5 million affordable homes in the next three years.

Under this scheme, first-time homebuyers in specified income brackets will receive interest subsidies of up to 4% on home loans, effectively reducing EMI burdens significantly. The government has allocated approximately Rs 35,000 crore for this initiative.

"This scheme addresses the critical need for affordable housing in our rapidly growing urban centers," said the Union Minister for Housing and Urban Affairs. "By making homeownership more accessible to the middle and lower-income segments, we are not only fulfilling a basic need but also stimulating the construction industry and creating jobs."

The scheme also includes provisions for developers, offering tax benefits and faster approval processes for projects where at least 60% of the units fall under the affordable housing category.

Industry experts have welcomed the move, with CREDAI (Confederation of Real Estate Developers' Associations of India) stating that this could potentially address the housing shortage in major cities while also boosting the real estate sector.