Major boost for “Housing for all” scheme with increased carpet area upto 2100 sq ft…
The Centre has increased the carpet area of houses eligible for interest benefit under the PM Awas Yojna (PMAY) for the middle-income group ( MIG) by 33 percent, as it looks to bring more beneficiaries under its fold.
This is the second increase in the carpet area in less than a year and is part of government’s effort to achieve “housing for all” by 2022.
Why is this important
The proposed measure implies that the households with income between Rs. 6 lakhs and Rs. 12 lakhs falling within the MIG-I category will be eligible for interest subsidy on houses with carpet area of 1,641 sq ft. (earlier 1,291 sq. ft) and households with income between Rs. 12 lakhs and Rs. 18 lakhs falling in MIG-II category will be eligible for interest subsidy on houses with carpet area of 2153 sq. ft (previously 1,722 sq. ft).
Further, the proposed measure is likely to benefit real estate companies having a focus on housing for all segment.
Impact on stock
The proposed measure is positive for Sunteck Realty (CMP: Rs. 400, MCap: Rs. 5761 crs, 15.8x FY20E PE), Puravankara Ltd (CMP: Rs. 116, MCap: Rs. 2765 crs, 20.6x FY20E PE).