GURUGRAM: Affordable housing dream is slipping away for homebuyers. The promise of affordable housing is quickly turning into a mirage for thousands of middle-class families in Gurgaon and Faridabad.The situation is frustrating for buyers. “We have been waiting for affordable projects for years. But there are hardly any new launches. Whatever is available in the market costs Rs 2-3 crore, which is completely out of our budget,” said Rajesh Kumar Srivastava, a resident of Sector 70 who works in the private sector.
The state’s flagship policy has failed to deliver new projects even as real estate prices rise beyond reach. The affordable housing policy was launched with the aim of offering budget housing to salaried professionals, young families and starters. But with no new projects launched in the past two years, potential homebuyers say the plan has become a “paper promise” that offers little relief.
Under the current policy, the government has capped the maximum retail price in Gurgaon and Faridabad at Rs 5,000 per sq ft. However, rising land and construction costs have made it difficult for developers to build at this pace, resulting in a near freeze in new project approvals. Town and Country Planning Department officials confirmed that no new affordable housing permits have been issued in Gurgaon or the Gurgaon-Manesar master plan area in the last 18 to 24 months.For aspiring homeowners, the stakes are high. With market prices soaring and affordable housing projects drying up, many fear they will be completely shut out of the real estate market unless policies are quickly recalibrated. Another potential home buyer, Abhishek Singh, himself a real estate consultant, said the intention behind the policy was good but it had not kept pace with market realities. “If the government sets prices that developers can’t work with, no one will build affordable housing. Ultimately, it’s buyers like us who suffer,” he said.
Industry experts say land prices in various sectors of Gurgaon have more than doubled in the last five years, while construction costs have increased by 25 to 30%. At current policy rates, a 600 to 700 sq ft flat costs around Rs 32 to 37 lakh, but developers claim such prices leave little room for land acquisition, construction and timely delivery, leading to stalled launches.
Piyush Garg, a potential buyer from New Delhi, said the government needs to urgently review the policy. “The middle class depends on such plans to buy their first home. If the rules are not changed, affordable housing will continue to exist only on paper,” he said.
Home buyers and industry associations are now demanding that the government revise the sales price cap by at least 25% and make the policy open and continuous to ensure a stable pipeline of projects. Developers say demand remains strong and they would return to this segment if interest rates come in line with ground realities.
Chairman of ROF Group MS Mittal said the policy was designed with good intentions and has helped thousands of families buy their own homes. “However, policies must evolve with market realities. Timely changes are needed to encourage new investments and sustain developer interest,” he said.
Joint Managing Director of Ganga Realty Vikas Garg said, “Rising land, construction and compliance costs have made affordable housing projects in Gurgaon less viable, causing developers to shift new supply to peripheral areas. Buyer demand is increasingly leaning towards premium and luxury properties along growth corridors such as Dwarka Expressway and Sohna. Policy support is needed to revive affordable housing closer to key employment centers and ensure balanced urban growth.”
Another city developer said demand for affordable housing in Gurgaon, Faridabad and Sohna belt remains strong. “If the government reviews prices in line with rising land and construction costs, developers can re-enter this segment and revive new project launches,” he said.
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