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Haryana's affordable housing policy has slowed significantly in NCR cities, particularly Gurugram and Faridabad, due to rising land prices and construction costs. Officials report no new licences for affordable housing projects have been issued in the Gurugram-Manesar Master Plan area for nearly two years, raising concerns about policy effectiveness. With maximum unit prices capped at INR 5,000 per square foot, typical flats cost INR 26-35 lakh, but developers find this unviable. Residents and industry bodies urge pricing revisions and continuous policy support to encourage project launches and address middle-class housing needs.
Haryana's affordable housing scheme is encountering implementation hurdles in NCR regions, especially Gurugram and Faridabad, as rising land and construction costs make projects increasingly difficult for developers to execute. Officials from the Town and Country Planning (TCP) Department stated that no new licences for affordable housing projects have been granted in Gurugram over the past one-and-a-half to two years. The Gurugram-Manesar Master Plan area has not seen a single new affordable housing project during this period, raising questions about the policy's practical impact. Advertisement
Under the current framework, the government caps the maximum sale price of affordable housing units at INR 5,000 per square foot in Gurugram and Faridabad. This means a 500-800 square foot flat is priced between INR 26 lakh and INR 35 lakh. However, developers and real estate experts highlight that land values in many Gurugram sectors have more than doubled in the last five years, while construction costs have risen by 25-30 per cent. This gap between pricing caps and actual project costs has made launching new affordable housing schemes economically unviable.
Residents have also expressed concern over the slowdown in new housing projects. Kapil Singh, a resident of Sohna Road, noted that the middle class has been waiting for years for affordable housing options, but new launches have nearly stopped. Abhijeet Ahuja from Sector 14 said that timely amendments to the policy are essential to encourage developers and facilitate new project launches.
Industry bodies and developers are now pushing for revisions to the policy's pricing structure. Stakeholders have proposed at least a 25 per cent increase in the prescribed sale rates. They have also requested that the government make the policy continuous rather than sporadic, ensuring sustained participation from developers. ROF Group Chairman M S Mittal said the policy was created with a positive intent and has helped thousands of families, but periodic revisions are necessary to keep it relevant and attractive for investment.
The National Real Estate Development Council (NAREDCO) raised the issue of revising rates with the Haryana Chief Minister during a meeting in Chandigarh in December 2025. The council emphasized that timely policy adjustments are vital to maintain developer interest and meet the housing needs of the middle-income segment in Gurugram and Faridabad.
Source PTI
FAQ
Q1. What challenges is Haryana facing with its affordable housing policy in NCR cities?
Haryana's affordable housing policy is struggling in cities like Gurugram and Faridabad due to rising land and construction costs. Officials report that no new licences for affordable housing projects have been issued in the Gurugram-Manesar Master Plan area for nearly two years. The capped unit price of INR 5,000 per square foot makes it difficult for developers to cover escalating expenses, causing a significant slowdown in new project launches and raising questions about the policy's effectiveness.
Q2. How are the pricing caps affecting developers and potential buyers?
Under the current policy, affordable housing units are capped at INR 5,000 per square foot. This means typical flats of 500-800 sq ft are priced between INR 26 lakh and INR 35 lakh. However, developers argue that land prices in Gurugram have more than doubled over the past five years, while construction costs have risen by 25-30%. The gap between project costs and capped prices has made new projects economically unviable, discouraging developers and limiting housing availability for middle-income buyers.
Q3. What are residents saying about the slowdown in affordable housing projects?
Local residents have expressed concern over the stagnation in new housing projects. Kapil Singh from Sohna Road noted that the middle class has been waiting for years for affordable housing options, but new launches have nearly stopped. Similarly, Abhijeet Ahuja from Sector 14 emphasized that timely amendments to pricing and policy structure are crucial to encourage developers to launch new projects, meeting the growing housing demand in Gurugram and Faridabad.
Q4. What solutions are developers and industry bodies proposing?
Industry stakeholders are advocating for revisions to the policy's pricing framework. They suggest at least a 25% increase in the maximum sale rates to account for rising land and construction costs. Additionally, they recommend making the policy continuous rather than sporadic, which would ensure sustained developer participation. ROF Group Chairman M S Mittal highlighted that while the policy has helped thousands of families, periodic adjustments are necessary to keep it relevant and attractive for investments.
Q5. What role has NAREDCO played in addressing the policy issues?
The National Real Estate Development Council (NAREDCO) has actively raised concerns about the policy with the Haryana government. During a meeting with the Chief Minister in Chandigarh in December 2025, NAREDCO emphasized the need for timely revisions to maintain developer interest and ensure affordable housing supply for the middle-income segment. Their advocacy focuses on balancing economic feasibility for developers with accessibility for buyers.
Q6. What is the overall impact of these challenges on housing in Gurugram and Faridabad?
The slowdown in affordable housing projects has limited options for middle-class families in NCR cities. With rising property prices and fewer new launches, demand remains unmet, putting pressure on the housing market. Without policy adjustments, developers may continue to hesitate, slowing urban housing development and affecting socio-economic growth. Timely revisions and continuous policy support are considered crucial to revive the sector and ensure that affordable housing goals are achieved.
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