Stakeholders Call for Review of Haryana's Affordable Housing Policy Amid Project Stalls

The Haryana government's ambitious plan to provide affordable housing has hit a significant roadblock in the National Capital Region (NCR) cities of Gurugram and Faridabad. Stakeholders have intensified calls for a review of the policy, as no new projects have been launched in these areas, raising serious concerns about its viability.

The primary issue lies in the escalating costs of land and construction, which have made it increasingly difficult for developers to undertake new projects under the current policy framework. According to industry experts, the policy needs to be aligned with the current market realities to ensure its success.

Rising land prices are a major contributor to the stall. The demand for land in Gurugram and Faridabad has surged, driven by the cities' rapid urbanization and economic growth. This has led to a significant increase in land values, making it unaffordable for developers to acquire the necessary plots at the prices stipulated by the policy.

Additionally, construction costs have also seen a substantial rise. The cost of building materials, labor, and other resources has increased, further exacerbating the financial burden on developers. These rising costs have made it challenging for developers to maintain the affordability of the housing units as mandated by the policy.

The government's intent to provide affordable homes is commendable, but the current policy framework appears to be out of sync with the market dynamics. There is a growing consensus among stakeholders that the policy needs to be revised to reflect the current economic conditions. This could include adjusting the land and construction cost benchmarks, offering incentives to developers, and providing financial assistance to homebuyers.

Moreover, the lack of new projects in these key NCR cities has raised concerns about the overall effectiveness of the policy. If the government fails to address the issues, it could lead to a significant shortfall in the supply of affordable housing, exacerbating the housing crisis in these regions.

To address these challenges, the Haryana government has been advised to engage in extensive consultations with developers, builders, and other stakeholders. This could help in identifying the key areas that need to be addressed and in formulating a revised policy that is more aligned with the current market conditions.

The government has also been urged to explore alternative models of affordable housing, such as public-private partnerships (PPPs) and community-led initiatives. These models could help in leveraging the resources and expertise of the private sector while ensuring that the housing units remain affordable for the intended beneficiaries.

In conclusion, the stall in new affordable housing projects in Gurugram and Faridabad highlights the need for a comprehensive review of the policy. By addressing the rising costs of land and construction and exploring innovative solutions, the government can ensure that its affordable housing initiatives are successful and sustainable in the long run.