Lok Sabha Question No. 3313 (UNSTARRED), answered on 2026-03-12
Subject: Decline in Supply of New Housing Units
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Shri Sasikanth Senthil

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 3313

TO BE ANSWERED ON MARCH 12, 2026

## DECLINE IN SUPPLY OF NEW HOUSING UNITS

NO. 3313.  SHRI SASIKANTH SENTHIL:

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

- (a) whether  the  Union  Government  is  aware  of  reports  indicating  a decline in the supply of new housing units priced below Rupees One crore in major metropolitan cities including Chennai in Tamil Nadu and if so, the details thereof;
- (b) whether  the  Union  Government  has  assessed  the  impact  of  rising land  costs,  reduction  in  average  unit  sizes  and  a  shift  towards higher-priced housing on housing affordability in urban areas and if so, the findings thereof; and
- (c) the  steps  taken/proposed  to  be  taken  by  the  Union  Government under Pradhan Mantri Awas Yojana - Urban (PMAY-U) to increase the supply of affordable housing and address affordability concerns in metropolitan cities?

## ANSWER

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

(a) to (c): 'Land' and 'Colonization' are State subjects as per Entry 18 of  List  -  II  of  the  Seventh  schedule  of  the  Constitution  of  India.    The Ministry  of  Housing  and  Urban  Affairs  (MoHUA)  does  not  maintain  the data relating to sale of houses and their value and trends in housing.

However,  the  Ministry  of  Housing  and  Urban  Affairs  supplements  the efforts of States/UTs, by providing Central Assistance for pucca houses to eligible urban beneficiaries across the country under Pradhan Mantri Awas Yojana- Urban (PMAY-U) since 25.06.2015.

Based on the learnings from the experiences of implementation of PMAYU, MoHUA has revamped the scheme and launched PMAY-U 2.0 'Housing for All' Mission with effect from 01.09.2024 for implementation in urban areas  across  the  country  to  construct,  purchase  and  rent  a  house  by eligible  beneficiaries  at  affordable  cost,  for  1  crore  additional  eligible beneficiaries  through  four  verticals  i.e.,  Beneficiary  Led  Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Interest Subsidy Scheme (ISS).

As  per  the  scheme  guidelines  of  PMAY-U  2.0,  the  fund  required  for purchase/construction  of  houses  under  the  scheme  is  shared  between the  Central  Government,  State/UT  Government/  Urban  Local  Bodies (ULBs) / Implementing agencies and the beneficiaries. States share has been  defined  and  made  mandatory  with  flexibility  to  the  State(s)  to increase their share to ensure affordability of houses to the prospective beneficiaries.

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  in  2025  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.

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.

A committee was constituted by NITI Aayog in May 2025 to prepare a detailed  approach  paper  proposing  a  comprehensive  framework  to promote  and  enable  affordable  housing  and  has  given  its  report  in December  2025  namely  'A  Comprehensive  Framework  to  Promote Affordable Housing'. The recommendations inter alia include certain tax exemptions and fiscal incentives. The report may be seen on the website of NITI Aayog at: https://niti.gov.in/sites/default/files/202601/A\_Comprehensive\_Framework\_to\_Promote\_Affordable\_Housing.pdf.

The recommendations of the Committee have been shared with Ministries  /  Departments  of  the  Government  /  States  and  UTs/  various other stakeholders for necessary action.

The Ministry conducts regular review with the States/UTs on progress of the  scheme  including  timely  release  of  Central  Assistance  and  its utilization along with ensuring completion of all the sanctioned houses within scheme period and stipulated timeline.

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