No Fresh Festive Housing Schemes Expected, Existing Policies Continue to Drive Demand
JM Financial Home Loans CEO Manish Sheth states that existing housing schemes like PMAY 2.0 and state policies are performing well, and no new festive push is expected.
Pmay 20Housing SchemesReal EstateMidsegment HousingGst RationalisationReal Estate NewsSep 24, 2025
“We do not expect any fresh developments as many of the already rolled-out schemes have been faring well. For example, 8.56 lakh homes have already been sanctioned under PMAY 2.0,” Sheth said.
To ensure that this number increases rapidly, the Angikaar 2025 campaign was announced on the PMAY-U Awas Divas held on September 17, 2025, to create awareness amongst the eligible beneficiaries. He added that recently launched state-level programmes such as the Maharashtra Housing Policy 2025 and Delhi Development Authority’s new schemes would begin to show results in the coming months, further aiding home purchases.
Freebies and affordability
On stamp duty waivers and freebies offered by builders, Sheth said they work both as marketing tools and as real savings for buyers.
“Utility savings such as discounts in per square foot rate, property registration fee waivers, interior fit-outs, etc. could turn out to be substantial savings for the customers,” he noted, while cautioning buyers to evaluate builders’ delivery track records before committing.
Mid-segment housing demand
The demand for mid-segment housing has tripled in the past four years. Sheth attributed this to India’s rising middle class, projected to reach 600 million by 2030.
“With dual-income households and higher disposable incomes, buyers increasingly aspire for well-planned and connected communities,” he said, adding that urbanisation, infrastructure growth, and RERA compliance have also spurred the trend.
GST rationalisation and cost impact
For affordability, GST rationalisation could make a tangible difference. Sheth highlighted the reduction of GST on cement from 28% to 18%.
“This may reduce 3–5% of the overall construction costs, as cement accounts for nearly a third of material costs in a project. Developers now need to ensure these benefits are passed on to homebuyers,” he said.
Real estate vs financial assets
On the role of real estate in an investment portfolio, Sheth emphasised the importance of diversification.
“The diversification between real estate and financial instruments such as REITs helps in spreading risks across multiple buckets and insulating the investments from local market scenarios. However, one needs to factor in the investment goals and risk tolerance before making such choices,” he said.
JM Financial Home Loans’ growth plans
Discussing his company’s strategy, Sheth said JM Financial Home Loans aims to scale its loan book to ₹5,000 crore within two years, and to ₹10,000 crore by FY30.
Frequently Asked Questions
What is PMAY 2.0?
PMAY 2.0 (Pradhan Mantri Awas Yojana 2.0) is a government initiative aimed at providing affordable housing to all by 2022. It includes various schemes to support homebuyers and developers.
What are the benefits of state-level housing policies?
State-level housing policies, such as the Maharashtra Housing Policy 2025 and Delhi Development Authority’s new schemes, offer additional incentives and support to homebuyers, helping to increase demand and improve housing infrastructure.
How do freebies and discounts from builders benefit homebuyers?
Freebies and discounts from builders, such as stamp duty waivers and interior fit-outs, provide significant cost savings for homebuyers, making home purchases more affordable.
Why is the demand for mid-segment housing increasing?
The demand for mid-segment housing is increasing due to the rising middle class, dual-income households, and higher disposable incomes. Urbanisation and improved infrastructure also contribute to this trend.
How does GST rationalisation impact construction costs?
GST rationalisation, such as the reduction in GST on cement from 28% to 18%, can reduce overall construction costs by 3-5%, making homes more affordable for buyers.
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