The announcements by Finance Minister Nirmala Sitharaman for providing rental housing facility for urban poor and migrant labourers as well as extending the credit linked subsidy scheme (CLSS) under PMAY by one more year will give impetus to affordable housing and kick-start consumption of construction materials, according to analysts and developers.
Ashok Mohanani, chairman, Ekta World and president (elect) NAREDCO, Maharashtra, said “The announcement whereby the Centre would be providing ₹11,000 crore to the States that will help provide basic necessities such as food, water and shelter will give a temporary relief to the migrant workers. This measure will stop 60 to 65% of reverse migration which, in turn, will revive the construction activities. The extension of CLSS with the infusion of ₹70,000 crore will help in boosting the housing sector.”
Anshuman Magazine, chairman and CEO, India, south east Asia, middle east and Africa, CBRE said, “The announcement on affordable rental accommodation for urban and migrant workers under PPP partnership will open newer avenues for the construction industry.
“For middle-income group, the extension of CLSS up to March 2021, will further strengthen demand in the affordable housing segment.”
“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,” said Shishir Baijal, CMD, Knight Frank India. Sharad Mittal, CEO, Motilal Oswal Real Estate Fund, said, “The scheme on providing affordable rented houses to migrant labour under the PMAY scheme will provide long-term stability for them and may help in reinstating their faith during this current crisis.”
Mrinal Kumar, partner, general corporate, Shardul Amarchand Mangaldas & Co., said the government- funded housing in cities being converted to affordable rental housing complexes through PPP will give the much required impetus to revive the real estate sector and other related industries.
“The affordable rental scheme is a step towards addressing the issue of housing of urban poor and migrant workers and will provide them with access to quality accommodation and security to encourage these workers to not return to their native places in a crisis like COVID-19.”
He said extension of CLSS will become a key driver for boosting the economy and attract foreign direct investment into the sector. Rohit Poddar, MD, Poddar Housing and Development Ltd. said, “We look forward to the affordable rental housing complexes for migrant workers and urban poor as it will help address housing problems of these workers.”
Murali Malayappan, CMD, Shriram Properties Ltd., said the extension of CLSS is a breather for the affordable housing sector as it will boost the sale of affordable housing units as home buyers will continue to get loans from banks and housing finance companies at a subsided interest rate. “It will also fuel related sectors such as building materials, cement and steel,” he added.