The one-year extension of Credit-Linked Subsidy Scheme (CLSS) will help push demand for affordable housing.
Reacting to the second tranche of the government’s ₹20-lakh crore economic package, Anuj Puri, Chairman – Anarock Property Consultants, said, “The government has unleashed (this scheme) for the benefit of migrant workers, traders, farmers and street vendors – and there is a real estate takeaway (to it).”
He added, “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.”
Since its implementation in 2017, the CLSS scheme has benefitted over 3.3 lakh families. The extension will further aid many more families to avail housing under this scheme.
“Now 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,” explained Puri.
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 the affordable segment over the last few years.
Quoting Anarock research, Puri said, “There are currently 15.62 lakh under-construction units across top seven cities, of which nearly 39 per cent are in the affordable segment priced less than ₹40 lakh.”
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “Today’s announcement has re-emphasised the government’s agenda of promoting ‘Affordable Housing’ and ‘Housing for All’. The extension of CLSS for another year will help demand for the affordable housing sector to inch back as and when the economy starts to revive. This, in turn, will help the construction sector to restart operations at the earliest possible.”
“However, for demand for housing to return, irrespective of the category, the economy must start growing at a stable rate providing individuals with financial security. Thus, to assess the overall impact on the real estate sector, we await the Finance Minister’s future announcements, especially for infrastructure and demand augmentation,” he added.