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Will increase in carpet area of houses under PMAY-U lead to substantial increase in demand?

The increase in the carpet area of residential units that would now be eligible for interest subsidy under the government’s Credit Linked Subsidy Scheme (CLSS) for the middle-income group (MIG) will cover almost 90 percent of housing projects across the country but the impact, say real estate experts, may not be substantial as those earning between Rs 12 lakh to Rs 18 lakh may already own a house. The Pradhan Mantri Awas Yojana is for first-time homebuyers. However, what it may do is to offer a wider choice to aspirational buyers waiting on the sidelines who had decided against purchasing a house due to limitation in sizes.

Source: NAREDCO