Lok Sabha Question No. 3347 (UNSTARRED), answered on 2025-03-20
Subject: Price Rise of Houses
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Shri Sribharat Mathukumilli

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 3347

## TO BE ANSWERED ON MARCH 20, 2025

## PRICE RISE OF HOUSES

- NO. 3347.     SHRI SRIBHARAT MATHUKUMILLI:

Will  the  Minister  of  HOUSING  AND  URBAN  AFFAIRS  be  pleased  to state:

- (a) the key drivers behind the trend of steady rise in house prices across major  cities  along  with  the  manner  in  which  the  Government  is planning  to  address  affordability  concerns  for  middle-income  and first-time buyers;
- (b) whether the Government has any data on new housing development projects and if so, the details thereof;
- (c) whether it is true that developers are focusing more on premium and high-end segments rather than middle-income and affordable housing segments  and  if  so,  the  details  thereof  along  with  the  reasons
- therefor;
- (d) whether the rent prices are rising faster than house prices and if so, the details thereof along with the measures taken/being taken by the
- Government to protect the tenants from excessive rent increases;
- (e) whether it is true that the house prices in some Indian cities are on par  with  those  in  developed  countries  like  the  U.S.  and  parts  of Europe and if so, the details thereof along with the underlying factors contributing to such price rise; and
- (f) the details of specific financial or policy interventions being explored to  improve  housing  affordability  and  encourage  the  construction  of budget-friendly houses?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU)

- (a) to (f): 'Land'  and  'Colonization'  are  State  subjects.  The  prices  of housing units and rent are determined by market forces like demand, supply, input prices and various other factors. The data on prices of housing units and rent is not centrally maintained by the Ministry.

To  support  the  affordable  housing  sector,  Central  Government  has taken  various  steps  such  as-  reduction  in  Goods  and  Services  Tax (GST) on under-construction Affordable Housing project from 8% to 1% without Input Tax Credit (ITC) and Infrastructure status to Affordable

Housing by including it in Harmonised List of Infrastructure.

Further,  the  Central  Government  has  launched  Pradhan Mantri Awas Yojana- Urban (PMAY-U) since 25.06.2015 to provide affordable pucca houses  with  basic  amenities  to  all  eligible  urban  beneficiaries  of Economically  Weaker  Section  (EWS),  Low  Income  Group  (LIG)  and Middle Income Group (MIG) categories by providing central assistance for construction, purchase and renting of houses at affordable cost.

Additionally,  based  on  9  years  of  experience  and  learning  from implementing PMAY-U, MoHUA  has revamped the scheme and launched  PMAY-U  2.0  'Housing  for  All'  Mission  with  effect  from 01.09.2024  to  assist  1  crore  additional  eligible  urban  beneficiaries. PMAY-U  2.0  guidelines  require  States/UTs  to  formulate  'Affordable Housing Policy' along with key reforms to attract private investment and  create  an  enabling  eco-system  for  augmenting  the  affordable housing stock in the country including the metro cities. List of major reforms are as under:

- i. Nominal  (less  than  1%)  Stamp  duty/Registration  Charges  for houses (up to 60 sqm) registered under PMAY-U 2.0.
2. 50%  additional  FAR  with  TDR  facility  free  of  cost  and  built-up area used for EWS/LIG, not to be counted in overall FAR of the
- ii. project.
- iii. Reservation  of  Land/Area  for  Affordable  Housing  in  relevant Scheme/Policy/ Building Byelaws.
5. Inclusion of Affordable Housing Zones in the Master Plans/Town
- iv. Planning Schemes.
- v. Exemption of charges in Land Conversion/Land Use changes for affordable housing projects.
- vi. Mandatory reservation of 5% of built-up area for EWS/LIG housing in all housing projects beyond 10,000 sqm built-up area or 5,000 sqm plot area.
- vii. Creation of land bank(s) for construction of houses under AHP by mapping  the  land  available  in  their  jurisdiction  along  with  the ownership details.

Moreover,  to  balance  the  rights  and  interests  of  both  landlord  and tenant,  Model  Tenancy  Act  (MTA)  was  formulated  by  the  Central Government,  which  has  been  circulated  to  all  the  States/UTs  for adoption  by  way  of  either  enacting  a  fresh  legislation  or  amending existing rental laws suitably.

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