Lucknow is a hub of easily affordable real estate units. There are numerous cheap flats in Lucknow today which one cannot simply resist buying. The tremendous offers+ schemes on cheap flats in Lucknow suit every stratum of society. Therefore in this blog, I will like to shed light on ‘affordable housing’ in the context of cheap flats in Lucknow.

Affordable Housing

As implied by the name, affordable housing refers to those housing units that are within reach of those with low incomes. Affordable housing is exclusively offered to low-income people. Economically weaker sections of society, and middle-income people. Local and national governments characterize these low-income people via certain parameters. Cheap flats in Lucknow is a part of affordable housing.

The factors on which affordable housing depends are:

Income
Affordability
Size of the residential house/property

Major forms of affordable housing include indigenous housings. This further states subsidized housing, emergency shelters, and formal and informal rental.

There is a certain importance of affordable housing for cheap flats in Lucknow. This includes:

More population and low per capita income
Majority of people do not possess high purchasing power
Massive inward migration of families from rural areas or semi-urban areas to urban areas

Shortage of houses. As per the Technical Group Report, there are 2 low-income categories that constitute 96% of the total housing shortage in India. These groups are economically weaker section (EWS) and low-income group (LIG).

Initiatives for Cheap Flats in Lucknow

Furthermore, if one wants to avail of any cheap flat in Lucknow. Or other affordable housing units. You must understand the following initiatives taken by government:

Prime Minister Awas Yojana (PMAY) Urban

The Pradhan Mantri Awas Yojana (PMAY) scheme was launched in 2015 by the Central Government. The motive was to provide ‘Housing for All’ in urban areas by the end of 2022. The PMAY provides central assistance to all eligible families in India. Its primary features include:

Boost the purchasing power of a large number of families

Provide interest subsidies to families based on their home loan based and income category.
The amount paid to families under PMAU can be used for the renovation of their current Kucha house or semi-pucca house.
External Commercial Borrowing (ECB)

External Commercial Borrowing has been allowed since 2012 for affordable housing projects. The aim of these borrowings is to enable lower interest costs for developers. It also focuses on confirming improved capital availability for developers of low-cost housing.

Opening up of Foreign Direct Investment (FDI)

The reason why the Indian government permitted Foreign Direct Investment (FDI). Includes enhancing construction development, housing, townships, and built-up infrastructure.

The Central Board of Direct Taxes (CBDT)

CBDT is another helpful initiative taken by the government for affordable housing. The CBDT works under section 35AD of the Income Tax Act. Herein, it offers the benefits of section 35AD. Such as permitting 150% of capital expenditure. As a tax deduction for affordable housing.

Encouraging Developers in the affordable housing sector

In addition to buyers, there are certain measures for developers for affordable housing as well. These include incentives like subsidies, tax benefits, and most importantly, institutional funding.

The government has also introduced a dedicated Affordable Housing Fund (AHF) in the National Housing Bank. This is an allocation of funds from priority sector lending shortfall and full-service bonds authorization by the government of India.

GST rates reduced for affordable housing

Lastly, there has been a reduction in GST rates. Recently the GST Council lowered tax rates for affordable housing, from 8% to just 1%.

The Council has also enhanced the ceiling value of affordable housing to Rs 45 lakh.

A lot is happening in reference to affordable housing. Lucknow city is offering complete support in this endeavor by offering cheap and best housing units.



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