Lok Sabha Question No. 2249 (UNSTARRED), answered on 2026-02-12
Subject: Affordable Housing Schemes
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Ms Sayani Ghosh

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 2249 TO BE ANSWERED ON FEBRUARY 12, 2026

## AFFORDABLE HOUSING SCHEMES

NO.  2249.    MS SAYANI GHOSH:

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

- (a) whether it is true that housing has become increasingly unaffordable for large sections of the population, despite the implementation of various housing schemes since 2014, if so, the details thereof;
- (b) the trend in house prices, land prices and household incomes during the last  ten  years  and  whether  housing  affordability  has  improved  or worsened, if so, the details thereof along with the reasons therefor;
- (c) whether  it  is  a  fact  that  land  policy  failures,  speculative  real  estate practices and rising input costs have contributed to high housing prices, particularly in urban and peri-urban areas, if so, the details thereof;
- (d) whether the Government has assessed the limited impact of affordable housing schemes in controlling market prices or meeting actual demand from low and middle-income households, if so, the details thereof; and
- (e) whether real estate developers availing Government incentives, subsidies or  regulatory  relaxations  are  being  effectively  monitored  to  ensure delivery of genuinely affordable housing, if so, the details therefor?

## ANSWER

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

- (a) to (e): 'Land' and 'Colonisation' are State subjects. Therefore, Government policies and schemes related to affordable housing for their citizens are implemented by States/Union Territories (UTs) in their respective urban areas.  Housing  is  also  constructed  by  various  private  agencies  in accordance with applicable real estate practices and State policies and is sold in the open market to the general public, including households from the Economically Weaker Section (EWS)/Low Income Group (LIG)/Middle Income Group (MIG)/High Income Group (HIG) categories, based on their affordability. Market prices include both construction costs and the cost of  land  for  the  project.  Consequently,  data  relating  to  State  housing policies, housing schemes and trends in housing and land prices are not maintained by this Ministry.

However,  Ministry  of  Housing  and  Urban  Affairs  (MoHUA)  supplements efforts  of  States/UTs  by  providing  Central  Assistance  under  Pradhan Mantri Awas Yojana - Urban (PMAY-U) and PMAY-U 2.0 with an aim to provide all weather pucca houses with basic civic amenities to eligible urban beneficiaries of EWS/LIG and MIG categories across the country at affordable rates. The funding under PMAY-U 2.0 is to provide a nudge to the beneficiaries and enable them to construct their houses by arranging funds from other sources as well.

In addition, PMAY-U  2.0 supports States/UTs for formulation and implementation  of  'Affordable  Housing  Policies'  to  incentivize  private sector participation through appropriate regulatory, fiscal and institutional  measures  to  make  the  housing  stock  affordable  in  urban areas.    The  Scheme  Guidelines  can  be  accessed  at  https://pmayurban.gov.in/uploads/guidelines/Operational-Guidelines-of-PMAY-U-2.pdf.

Further, Government of India has restructured Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) for EWS/LIG to enhance the credit accessibility and worthiness of eligible households by extending the  guarantee  on  the  housing  loan  taken  from  Scheduled  Commercial Banks,  Housing  Finance  Companies  (HFCs)  etc.  thereby  making  the houses affordable.

In addition, special Home Loan Products are developed by Department of Financial  Services  (DFS)  with  Banks  to  help  beneficiaries  of  informal sectors. States/UTs are also expected to facilitate home loan to PMAY-U 2.0 beneficiaries through tripartite agreement.

To  support  affordable  housing,  Central  Government  has  taken  various steps  such  as  reduction  in  Goods  and  Services  Tax  (GST)  on  underconstruction 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, GST on cement has also been  reduced  recently  from  28%  to  18%,  which  is  one  of  the  major construction  materials  and  its  lower  prices  will help  in  reducing  the construction costs and make housing more affordable.

Based on the project proposals submitted by States/UTs, a total of 122.28 lakh houses, including 10.66 lakh under PMAY-U  2.0, have been sanctioned under the schemes by the Ministry, so far across the country. Of  the  sanctioned  houses,  114.84  lakh  houses  have been grounded for construction, of which  97.02 lakh are completed/delivered to the beneficiaries as on 22.01.2026.

Further, NITI Aayog has prepared a detailed approach paper to promote and enable affordable housing and released its report in December 2025 namely 'A Comprehensive Framework to Promote Affordable Housing'. The report may be seen on the website of NITI Aayog at https://niti.gov.in/sites/default/files/2026-

01/A\_Comprehensive\_Framework\_to\_Promote\_Affordable\_Housing.pdf.

The report has been shared with all concerned stakeholders for further necessary action.

The Central Government has been continuously engaging in deliberations with  the  respective  State  and  UT  Governments,  as  well  as  other stakeholders,  to  address  issues  related  to  the  housing  sector  and  to promote affordable housing.

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