Affordable Housing

Affordable housing refers to existing and future housing units that come under the Pradhan Mantri Awas Yojana (PMAY), which was launched in 2015.

• The scheme was launched with the aim of building 2 crore affordable houses over a period of 7 years for the lower income segment
• Budget 2020-2021 allocation to PMAY increased by 8% to ₹27,500 crores
• Affordable housing projects were granted ‘infrastructure status’ earlier in Budget 2017, which ensured lower cost of borrowing for developers, thus encouraging them to take such projects
• Developers engaged in affordable housing projects also do not have to pay GST
• Furthermore, they can claim 100% deductions on profits if they meet certain conditions, making this a valuable proposition for many real estate developers

This smallcase consists of stocks from segments like housing finance companies focused on financing low and middle income segments, real estate developers constructing affordable houses and cement & building products companies.