Haryana raises affordable housing rates by up to 12%: Supply boost likely, but homes likely to get costlier

The Haryana government has increased allotment rates under its Affordable Housing Policy-2013 by 10–12%, pushing prices to ₹4,250– ₹5,575 per sq ft across cities

The Haryana government has increased allotment rates under its Affordable Housing Policy-2013 by 10–12%, pushing prices to ₹4,250– ₹5,575 per sq ft across key cities. Real estate experts say the revision is likely to raise homebuyer costs by ₹3–4 lakh per unit. While developers view the move as positive, they note that the overall operating environment remains challenging. Land prices have surged in recent years, often outpacing existing caps, while input costs such as steel, cement and labour continue to rise, making it difficult to sustain projects within the current framework.

The Haryana government on March 24 revised prices of flats developed under the Affordable Housing Policy-2013, raising rates across Gurugram, Faridabad, Sohna and other towns. The revised prices now range from ₹4,250 per square foot (per sq. ft) to ₹5,575 per sq. ft, the Hindustan Times newspaper reported.

The Haryana government has increased allotment rates under its Affordable Housing Policy-2013 by 10–12%, pushing prices to ₹4,250– ₹5,575 per sq ft across key cities. Real estate experts say the revision is likely to raise homebuyer costs by ₹3–4 lakh per unit. (Representational photo) (Gemini Generated Photo )

The revision aims to revive stalled projects by restoring viability for developers grappling with rising land and construction costs. It is expected to spur fresh launches and improve supply, though homebuyers may see an increase of around ₹3–4 lakh per unit, say real estate experts.

However, developers caution that challenges persist. Land prices have surged significantly in recent years, often outpacing existing caps, while input costs such as steel, cement, and labour have continued to rise. These pressures make it difficult to sustain projects within the current framework.

This is what real estate experts have to say

The 10–12% rate change is meant to get stalled projects back on track by making affordable housing viable for developers again in the face of rising land and construction costs. It should lead to more new launches, which will increase supply, said Santhosh Kumar, vice chairman, ANAROCK Group.

“It means that homebuyers will have to pay perhaps ₹3-4 lakh more per unit, but homes will be available again and finished faster. In the long run, more supply can stabilise prices and make it easier for middle-class buyers to see their dream of homeownership fructify,” he said.

The Haryana Government’s decision to revise allotment rates for affordable group housing is a welcome move that acknowledges the shifting economic landscape. This adjustment provides a measured relief to a sector that has been navigating a period of rising costs. However, it is important to recognize that while this step is positive, the operational environment for developers remains complex, said Pradeep Aggarwal, founder and chairman, Signature Global (India) Ltd.

“Over the last couple of years, land prices have escalated significantly, often outpacing current price caps. Simultaneously, the industry has faced a steady rise in the cost of essential building materials such as steel and cement, alongside increased labor expenses. These cumulative factors make it a delicate task for developers to launch and sustain new projects within the existing framework. While we appreciate this necessary intervention, we believe that for the affordable housing mission to truly thrive, the rates should be further aligned with today’s market reality and actual construction costs,” he said.

Amendment in the Affordable Housing Policy-2013

The Cabinet, which met here under the chairmanship of Chief Minister Nayab Singh Saini this week, approved the amendment in the Affordable Housing Policy-2013 as amended from time to time under section 9A of the Haryana Development and Regulation of Urban Areas Act, 1975, an official statement said. The rates of allotment of apartment units are prescribed in Clause 5(i) of the Affordable Housing Policy-2013. These rates were approved in 2013, and later on revised in 2021 and 2023, the government statement said.

"The representation has been examined and to extend the benefits of Affordable Group Housing (AGH) policy to the targeted beneficiaries, it is felt that in order to encourage affordable group housing projects, the allotment rates for the apartment units under AGH projects across the State of Haryana may be increased on an average by 10 to 12 per cent from previous rates," the statement said.

These rates may be made applicable to all licenses granted under the Affordable Housing Policy-2013, which are yet to make allotments.

According to the decision, the revised rates will apply to all licences granted under the policy where allotments are yet to be made. In cases where applications have already been invited, the draw will be conducted based on existing applications, but the differential amount will be recovered from successful applicants. Ongoing projects where allotments have already been made by the department of town and country planning will not be affected by the price hike, the government order said.

The new rates

In Gurugram, the rate has been increased from ₹5,000 to ₹5,575 per sq. ft. Balcony rates have been raised from ₹1,200 to ₹1,300 per sq. ft, with a cap of ₹1.30 lakh. Meanwhile, in Sohna, the rate has been increased from ₹4,500 to ₹5,450 per sq. ft, while in Faridabad it has been revised from ₹5,000 to ₹5,450 per sq. ft. In other high and medium potential towns, flats will now be priced at ₹5,050 per sq. ft, while in low potential towns the rate will be ₹4,250 per sq. ft.