Is 2017 the best year to buy affordable houses?

New Delhi: The Prime Minister ambitious affordable housing programme as it targets to achieve 'Housing for All' by 2022, has once again set the tone for home buyer's aspiration for a dream house.

The government, in a bid to give a boost to the real estate sector, had accorded infrastructure status to the affordable housing segment in this year's budget.

On December 31, Prime Minister Narendra Modi had announced interest subsidy of up to 4 percent on loans taken in the new year under the Pradhan Mantri Awaas Yojana.

Modi, in his national address on New Year's eve, had also said 33 percent more homes will be built for the poor under this scheme in rural areas.

Besides, in urban areas housing loans of up to Rs 9 lakh and up to Rs 12 lakh will receive interest subsidy of 4 percent and 3 percent respectively, while in rural areas loans up to Rs 2 lakh will get an interest subvention of 3 percent.

An Economic Times report quoting Amrit Abhijat, Mission Director, PMAY and JS (HFA) said that low interest rates “makes it the best time to buy an affordable house in urban India”.

“With the inclusion of LIG and MIG in the fold of affordable housing, the government is clearly matching aspirations to resources to create a kind of ecosystem fuelled by incentives. They are available in 2017-18. The home loan interest rates too are low,” the ET report said.

Considering that all the “incentives may not exist” in the coming year, this certainly makes a good year to purchase a house, the ET said.