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The Haryana Cabinet, chaired by Nayab Singh Saini, has approved an amendment to the Affordable Housing Policy-2013, increasing allotment rates for affordable group housing projects by 10-12%The revision comes in response to rising project costs, including land, construction materials, and labour. Under the updated framework, per sq ft carpet area rates have been revised across cities such as Gurugram, Faridabad and Sohna. The policy also clarifies adjustments for ongoing applications and introduces provisions for mixed land use development across the state.
The Haryana Cabinet, which convened in Chandigarh under the leadership of Nayab Singh Saini, approved an amendment to the Affordable Housing Policy-2013. The decision includes an increase in allotment rates for apartment units under affordable group housing projects by 10-12 % Advertisement
The amendment to the policy, originally notified in 2013 under the provisions of section 9A of the Haryana Development and Regulation of Urban Areas Act, 1975, has been revised periodically, with earlier revisions recorded in 2021 and 2023. The allotment rates, which are defined under Clause 5(i) of the policy, have now been updated once again to reflect current market conditions.
The Cabinet decision follows multiple representations received from industry stakeholders, including bodies such as the BRICS Chamber of Commerce and Industries. These representations highlighted the rising costs associated with land acquisition, construction materials, project execution, and labour, which have collectively impacted the viability of affordable housing projects.
After examining these concerns, the state government observed that revising the allotment rates would help sustain and encourage affordable group housing developments across Haryana. The revised pricing is intended to balance developer feasibility while continuing to serve targeted beneficiaries under the policy framework.
In terms of revised pricing, Gurugram will see the maximum allotment rate increase from INR 5,000 per sq ft to INR 5,575 per sq ft on a carpet area basis. In Faridabad and Sohna, the rate has been fixed at INR 5,450 per sq ft. For other high and medium potential towns, the rate has been set at INR 5,050 per sq ft, while low potential towns will have a maximum allotment rate of INR 4,250 per sq ft.
These revised rates are expected to apply to all licenses issued under the Affordable Housing Policy-2013 where allotments are yet to be made. In cases where applications have already been invited, applicants will be required to pay the differential amount if they are selected through the draw process, which will continue to be conducted based on the original applications received.
Applicants who choose not to proceed under the revised pricing structure will be eligible for a refund of their deposited application amount without any deductions. Colonisers are expected to issue a public notice to inform applicants about this option.
In addition to housing policy revisions, the Cabinet also approved a new policy concerning the utilisation of land earmarked for mixed land use across various development plans in the state. Mixed land use zones, which include combinations of residential, commercial, public, semi-public, and industrial activities, had been defined in certain plans but lacked clear percentage allocations for each category.
Due to the absence of defined usage proportions, approvals for projects in such zones had remained pending. The newly approved policy addresses this gap by allowing residential, commercial, and institutional uses in mixed land use zones without being restricted by percentage caps against the net planned area of the sector or zone.
Source PTI
FAQ
Q1: What decision has the Haryana Cabinet taken regarding affordable housing rates?
The Haryana Cabinet, chaired by Nayab Singh Saini, has approved an amendment to the Affordable Housing Policy-2013, increasing allotment rates for affordable group housing projects by around 10-12 % to align with rising costs.
Q2: Why were the affordable housing allotment rates increased?
The revision was made in response to rising costs of land, construction materials, labour, and overall project execution, which had impacted the financial viability of affordable housing projects for developers.
Q3: What are the revised allotment rates in key cities like Gurugram, Faridabad and Sohna?
In Gurugram, the allotment rate has increased from INR 5,000 to INR 5,575 per sq ft on a carpet area basis, while in Faridabad and Sohna the rate has been set at INR 5,450 per sq ft.
Q4: How do the revised rates vary across different towns?
For other high and medium potential towns, the rate is fixed at INR 5,050 per sq ft, while low potential towns will have a maximum allotment rate of INR 4,250 per sq ft, depending on location categories.
Q5: Who will be affected by the revised allotment rates?
The revised rates will apply to all licenses issued under the Affordable Housing Policy-2013 where allotments are yet to be made, and applicants selected through draws may need to pay the difference if applicable.
Q6: What options are available to applicants who do not agree with the revised pricing?
Applicants who choose not to proceed under the revised rates will be eligible for a refund of their deposited application amount without any deductions, as per the policy provisions.
Q7: What additional policy change was approved by the Cabinet?
The Cabinet also approved a new policy for mixed land use zones, allowing residential, commercial, and institutional uses without strict percentage caps, to address earlier delays in project approvals due to unclear usage allocations.
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