- Inventory in MIG category has almost doubled in urban areas
- Noida biggest beneficiary in MIG; Thane, Navi Mumbai, Mumbaionly in LIG
Noida, June 12, 2018 Reserve Bank of India’s (RBI) decision to increase the housing loans limits and revise the value of the house available for Affordable Housing Scheme under Pradhan MantriAwasYojna – Urban (PMAY-U)has resulted in a significant increase in the availability of stock in both the primary and the secondary market and almost doubling it in the Middle-Income-Group (MIG) category, reveals a Magicbricks survey.
Last week, the RBI revised the housing loan limits for Priority Sector Lending (PSL) eligibility from the existing Rs.28 lakhs to Rs.35 lakhs in metropolitan centres (with population of ten lakhs and above), and from existing Rs.20 lakhs to Rs.25 lakhs in other centres, provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs.45 lakhs and Rs.30 lakhs respectively.
Magicbricks analysed data pertaining to a million plus listed properties for sale and resale on its platform and it revealed that as a direct consequence of RBI’s revision of the overall cost of the dwelling unit in urban areas, a significant portion of home buyers in both the Lower Income Group (LIG) and MIG buyers in the Delhi NCR cities of Greater Noida, Ghaziabad, and Noida, along with Chennai and Kolkata will be benefitted. Also, the Mumbai Metropolitan Region (MMR) cities of Thane, Navi Mumbai, and Mumbai will have just the LIG segment benefitting from the revised PMAY-Urban scheme while most of the MIG segment buyers missing out on the scheme. Gurgaon is the only city where not many will benefit in either of the LIG and MIG segments.
Post revision, Greater Noida seems to be the biggest beneficiary in the MIG category as the number of available properties for sale have gone up from 31% to 55%. It is followed by Ghaziabad, Kolkata and Noida. The southern cities of Chennai, Hyderabad, and Bangalore will have around 20% of the city’s stock eligible under the PMAY-U for the mid income segment buyers.
In the LIG category, the revision has led to a significant addition of eligible stock in the cities of Chennai, Thane, Pune, and Navi Mumbai. While the average price in these cities is high, increase in the price limit to Rs.45 Lakhs brings the peripheral areas of these cities with relatively cheaper stock into the scheme fold and makes the purchase relatively cheaper.
The revision in housing loans limit is a significant boost to both the consumers and the housing market as it brings a sizable section of homebuyers in India under the scheme and incentivizes them to buy property.
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