Centre to Persuade States to Lower Land Prices for Affordable Housing
The Centre, in consultation with the states, aims to lower land prices for affordable housing projects, particularly under the Prime Minister Awas Yojana (PMAY).
Affordable HousingPmayLand PricesManohar Lal KhattarNaredcoReal Estate NewsAug 31, 2025
Speaking at the valedictory session of the 17th NAREDCO National Convention, Manohar Lal announced his intent to convene a meeting of state housing ministers and senior policymakers to push for consensus on affordable land pricing.
While he did not specify a timeline, he confirmed that such discussions would be accompanied by broader reforms aimed at accelerating housing activity nationwide. The Minister, however, did not specify a timeline for the meeting, only assuring that such a consultation would take place.
He also noted that additional policy reforms would be initiated with relevant stakeholders at both the Central and state levels to spur housing activities across the country. In the meantime, Manohar Lal urged members of NAREDCO to raise this matter with state-level policymakers, since land is primarily a state subject and the Centre has limited jurisdiction except to persuade states to relax land prices for affordable housing.
He further requested that once relaxed land prices are introduced, developers must ensure that affordable housing units are constructed at suitable sites. Choosing substandard locations, he cautioned, could dilute the credibility of the real estate sector. The Minister added that states implementing best practices in housing should serve as role models, with a mechanism developed to replicate these practices across the country for holistic real estate growth.
On the subject of metro expansion, the Minister informed that in the next 4-5 years, India's metro rail network is expected to expand to nearly 1,500 km, up from the current 1,036 km. He stressed the government's focus on ensuring last-mile connectivity so that passengers can travel seamlessly and without inconvenience.
Frequently Asked Questions
What is the primary goal of the Centre's new mechanism for land prices?
The primary goal is to ensure that land prices for affordable housing projects are kept relatively lower than those for other housing segments, particularly under the Prime Minister Awas Yojana (PMAY).
Who is Manohar Lal Khattar and what is his role in this initiative?
Manohar Lal Khattar is the Minister of Housing & Urban Affairs. He announced the intent to convene a meeting of state housing ministers and senior policymakers to push for consensus on affordable land pricing.
What are the broader reforms mentioned by the Minister?
The broader reforms include additional policy reforms initiated with relevant stakeholders at both the Central and state levels to spur housing activities across the country.
What is the role of NAREDCO in this initiative?
NAREDCO members are urged to raise the issue of affordable land prices with state-level policymakers, as land is primarily a state subject and the Centre has limited jurisdiction.
What is the expected expansion of India's metro rail network in the next 4-5 years?
India's metro rail network is expected to expand to nearly 1,500 km, up from the current 1,036 km, with a focus on ensuring last-mile connectivity.
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