From subsidised home loans to GST cuts: What is government doing to make homes more affordable?
Buying a home is one of the biggest financial decisions most Indian families make. With property prices climbing, borrowing costs remaining high and access to affordable credit still uneven, home ownership continues to be out of reach for many aspiring buyers. To bridge that gap, the Centre has rolled out a series of measures—from subsidised home loans and affordable housing schemes to GST relief and policy reforms—aimed at making housing more affordable across income groups.
PMAY-U 2.0
At the centre of the government's strategy is Pradhan Mantri Awas Yojana - Urban (Pmay-U 2.0), launched on September 1, 2024, to support one crore additional urban households over the next five years.
The revamped mission works through four components:
- Beneficiary Led Construction,
- Affordable Housing in Partnership,
- Affordable Rental Housing and
- the Interest Subsidy Scheme,
Covering everything from self-built homes and partnerships with developers to rental accommodation and subsidised home loans.
The government told Parliament that the revamped programme builds on the experience of the original PMAY -U, which has been in operation since 2015 to provide pucca houses with basic civic amenities to eligible urban beneficiaries.
Affordable rental housing for migrant workers
To improve access to rental homes, the housing ministry launched affordable rental housing complexes (ARHC) under Pmay-U. The scheme targets urban migrants and economically weaker workers by providing affordable rental accommodation close to workplaces.
