The Pradhan Mantri Awas Yojana scheme was initiated with the intent of providing affordable housing solutions through credit-linked subvention of mortgages for economically vulnerable groups such as low and middle income classes. This scheme provides both public and private financing.

1. The Pradhan Mantri Awas Yojana scheme was initiated with the intent of
providing affordable housing solutions through credit-linked subvention of
mortgages for economically vulnerable groups such as low and middle income
classes. This scheme provides both public and private financing.
The program is divided into two distinct halves - PMAY Urban and Rural. Each
half offers unique features and benefits designed to address specific groups
within society - for instance, PMAY Rural is targeted specifically toward people
living in rural environments while its urban component caters more towards
urban dwellers.
How Pradhan Mantri Awas Yojana Scheme is Reviving and Boosting the Housing Sector

2. In 2017, most housing projects that were undertaken fell within the budget and mid-range price segments;
indeed, this category alone represented over 40% of all residential construction projects undertaken during
2017.
At the same time, estate-based private equity made 67 investments worth $6.1 billion across the US; over
half were allocated towards affordable housing projects.
Given this reality, it seems likely that the Union Budget 2018 will provide the affordable housing industry and
PMAY with a major boost, while private equity funds may invest more capital than ever this year.
The second quarter of 2017 witnessed an unprecedented surge in investments into affordable housing due to
rising house prices and government efforts to promote the Housing Initiative. Real estate owned by private equity
firms made significant investments into low-cost home markets - here are a few lessons they have learned along
the way.
India's real property market has seen an immediate decrease due to demonetization, the implementation of Real
Estate (Regulation and Development) Act 2016 and Goods & Services Tax (GST), making these investments
instrumental in helping boost industry.
Unlocking the Potential: Investing in Affordable Housing

3. In 2017, most housing projects that were undertaken fell within the budget and mid-range price segments;
indeed, this category alone represented over 40% of all residential construction projects undertaken during
2017.
At the same time, estate-based private equity made 67 investments worth $6.1 billion across the US; over
half were allocated towards affordable housing projects.
Given this reality, it seems likely that the Union Budget 2018 will provide the affordable housing industry and
PMAY with a major boost, while private equity funds may invest more capital than ever this year.
The second quarter of 2017 witnessed an unprecedented surge in investments into affordable housing due to
rising house prices and government efforts to promote the Housing Initiative. Real estate owned by private equity
firms made significant investments into low-cost home markets - here are a few lessons they have learned along
the way.
India's real property market has seen an immediate decrease due to demonetization, the implementation of Real
Estate (Regulation and Development) Act 2016 and Goods & Services Tax (GST), making these investments
instrumental in helping boost industry.
Unlocking the Potential: Investing in Affordable Housing

4. Since its implementation on 16 June 2016 by Awas Yojana, it has played a pivotal role in
providing affordable housing. Homebuyers benefit greatly from an interest rebate of 6.5
percent (44.44%, 6.5% and 3.3% on LIG/EWS flats, MIG 1 and MIG II flats respectively),
offering them significant savings on loan payments. Since this amount is paid directly into
their accounts as early as possible it also reduces loan balances thus decreasing monthly
EMIs resulting in positive reviews among home buyers.
Recently, government officials extended the credit linked scheme until 2021, leading to
increased demand for affordable homes as well as an increase in cash flows into the real
estate sector. Furthermore, increased liquidity will support construction industry related
industries like steel manufacturing and building materials while creating jobs across many
fields.
Impact of PMAY on the Real Estate Sector