Centre to Push States for Lower Land Prices to Boost Affordable Housing
The Centre, in collaboration with states, aims to reduce land prices for affordable housing projects under the Prime Minister Awas Yojana (PMAY). This initiative, announced by Manohar Lal Khattar, Minister of Housing & Urban Affairs, is part of broader reforms to accelerate housing activities nationwide.
Affordable HousingLand PricesPmayNaredcoMetro ExpansionReal EstateAug 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 Prime Minister Awas Yojana (PMAY)?
The Prime Minister Awas Yojana (PMAY) is a flagship program of the Government of India aimed at providing affordable housing to all by 2022. It includes both urban and rural components to ensure that every family has a pucca (permanent) house with basic amenities.
Why is the Centre pushing for lower land prices?
The Centre is pushing for lower land prices to make affordable housing more viable for developers and accessible to lower-income groups. Reducing land costs can significantly lower the overall cost of housing projects, making them more affordable for the target population.
What role do state governments play in land pricing?
State governments play a crucial role in land pricing as land is a state subject under the Indian Constitution. The Centre can only persuade states to relax land prices but cannot enforce it directly. State governments have the authority to set and adjust land prices within their jurisdictions.
What is NAREDCO and its role in the real estate sector?
NAREDCO, the National Real Estate Development Council, is an apex body representing real estate developers in India. It plays a significant role in promoting the real estate sector and advocating for policies that support the growth of the industry. NAREDCO members often engage with policymakers to influence housing policies and regulations.
What is the expected impact of the metro rail network expansion?
The expansion of the metro rail network is expected to improve urban connectivity, reduce traffic congestion, and enhance the quality of life in cities. With the network expected to expand to nearly 1,500 km in the next 4-5 years, it will provide better last-mile connectivity and make travel more convenient for passengers.
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