DTCP notifies new rates for affordable housing projects

The department of town and country planning (DTCP) on Thursday notified new rates for affordable group housing projects, increasing the price of affordable flats from 4,200 per square foot (sq ft) to 5,000 per sq ft in Gurugram, Faridabad, Panchkula, Pinjore and Kalka.
The rates of balcony have also been increased from 1,000 per sq ft to 1,200 per sq ft. However, If the size of the balcony is more than 100 sq ft, the real estate company cannot charge more than 1.2 lakh, the notification said.

The decision of the Haryana government to amend the Affordable Housing Policy, 2013, has not gone down well with buyers, who said the new rates have essentially put affordable housing beyond the reach of the common man.
“The rates are beyond the ability of a common person to pay. The purchase price is almost equal to that of premium properties, if the size is equalised. An increase of 200-300 would have been okay, but this hike is too steep,” said Arman Ahmad, a resident of Sector 23A.
The buyers said with banks increasing interest rates of home loans, it has become even more difficult for the average citizen to buy a house. “The price hike will keep people away from the real estate market,” said Jitender Dalal, who had planned to buy a flat in the near future.
The Haryana cabinet on July 7 approved the increase in rates. Apart from Gurugram and Faridabad, the government has increased rates by 800 sq ft in Panchkula, Pinjore and Kalka, DTCP said.

The government has also said that if the allotment letter has not been issued as yet, realtors can charge applicants the new rates.The rates in hyper and high potential zones — Gurugram, Faridabad, Panchkula, Pinjore-Kalka– has been increased to 5,000 per sq ft on carpet area from the existing rate of 4,200 per sq ft.

“Already plotted developments under Deen Dayal Upadhyay Jan Awas Yojana have been made unviable with developers raising prices beyond 1 crore. Considering that it is mostly the middle class which has been buying homes under the affordable housing policy of the Haryana government, the move will prove counter productive. It will also affect developers as sales will go down, “ said Vinod Behl, a real estate expert.

Developers, however, said the hike in rates will make affordable housing projects viable for all.Pradeep Aggarwal, founder and chairman, Signature Global (India) Ltd, said, “The increase in rates for hyper and high potential zones such as Gurugram, Faridabad, Panchkula by 800 per sq ft on carpet area makes affordable housing projects more viable for developers.”

Ashwani Kumar, Pyramid Infratech, said, ”This decision reflects the government’s proactive approach to tackling the real estate market challenges and providing adequate housing options for the people of Haryana. By recognising the market dynamics and adjusting the rates accordingly, the government has fostered an environment where developers can thrive while ensuring affordable housing remains accessible,” he said.