Haryana Cabinet Approves 10-12% Rate Hike for Affordable Housing Projects
The Haryana cabinet, in a significant move to boost the state's real estate sector, has approved an amendment to the Affordable Housing Policy-2013. This amendment increases the allotment rates for apartments under affordable group housing (AGH) projects by 10–12% across the entire state. The decision was taken during a meeting chaired by Chief Minister Nayab Singh Saini on Tuesday.
Reviving Stalled Projects and Addressing Rising Costs
The primary objective behind this rate revision is to revive stalled affordable housing projects and address the escalating input costs that developers have been facing. These costs include significant increases in land prices, construction materials, and labor expenses. The decision follows persistent representations from various industry bodies, highlighting the financial challenges in executing projects under the old rates.
The government emphasized that the allotment rates, which were originally fixed in 2013 and had seen revisions in 2021 and 2023, required an urgent update to reflect current market realities. This adjustment is seen as a crucial step to encourage and incentivize the development of more affordable housing projects across Haryana.
Implementation Details and Refund Provisions
The revised rates will be applicable to all licenses where the allotment of apartments has not yet been finalized. In cases where applications have already been invited from prospective buyers, the successful applicants will be required to pay the differential amount corresponding to the new rates. However, the draws for allotment will be conducted based on the existing applications to maintain transparency and fairness.
To protect consumer interests, the policy includes a refund provision. Applicants who are unwilling to proceed with their applications at the revised, higher rates will be eligible for a full refund of their application amount without any deductions. This ensures that buyers are not forced into purchases beyond their financial comfort.
Revised Allotment Rates Per Square Foot
The updated rates vary based on the location and potential of the towns. Here is a detailed breakdown of the revised allotment rates per square foot:
- Gurugram: Increased from ₹5,000 to ₹5,575 per sq ft.
- Faridabad and Sohna: Rates have been raised to up to ₹5,450 per sq ft.
- High and Medium Potential Towns: Allotment rates are now up to ₹5,050 per sq ft.
- Low Potential Towns: The rates have been set at up to ₹4,250 per sq ft.
This structured increase aims to balance affordability with the economic viability of projects in different regions of Haryana. The move is expected to stimulate the affordable housing segment, providing a much-needed boost to the state's construction industry and addressing housing shortages for lower and middle-income groups.
