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
• Out of which, approximately 80 lakh houses are being targeted to complete by FY23
• Budget 2022-2023 allocation to PMAY increased by 75% to ₹40,000 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
• Affordable housing projects can avail a tax holiday till 31st March, 2022. Tax exemption for notified Affordable Rental Housing Projects will also continue for 1 more year.
• The additional deduction of ₹1.5 lakh shall be made available for loans taken up till 31st March 2022, for the purchase of an affordable house.
• These measures are expected to increase the demand for affordable houses and corresponding loans.

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.