The Haryana government on Tuesday revised prices of flats developed under the Affordable Housing Policy-2013, raising rates across Gurugram, Faridabad, Sohna and other towns, officials said. The revised prices now range from ₹4,250 per square foot (per sq. ft) to ₹5,575 per sq. ft. The decision was taken at a Haryana cabinet meeting chaired by chief minister Nayab Singh Saini.
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, as per the government order.
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.
The supply of affordable housing projects in the city has slowed significantly over the past couple of years, with DTCP officials stating that around four to five projects are currently in the pipeline, expected to add nearly 5,000 flats across Gurugram, Farrukhnagar and Sohna.
Earlier, in 2023, prices were revised from ₹4,200 to ₹5,000 per sq. ft in Gurugram, Faridabad, Panchkula, Pinjore and Kalka, which are designated as hyper potential zones. In high and medium potential towns such as Sohna, the rate was revised to ₹4,500 per sq. ft, marking an increase of ₹700 per sq. ft.
The Affordable Housing Policy was notified by the department of town and country planning on August 19, 2013. As per the amended policy now, if allotment letters have not been issued, real estate companies can recover the revised amount from applicants. A Haryana government official said the revision followed requests from builders and real estate associations citing increased land prices, higher construction input costs and rising labour wages.
Meanwhile, department of town and country planning officials said applications for flats can be submitted through the department’s portal and allotments are made through a draw system. Applicants must deposit 5% of the total cost to participate. Upon allotment, an additional 20% is to be paid, with the remaining 75% payable in six instalments. Builders are required to complete construction and hand over possession within four years.
Even as the government hiked prices by 10–12%, developers remained sceptical, saying the increase would not cover costs in hyper potential cities such as Gurugram, Faridabad and Panchkula.
“The price of land is very expensive… launching affordable projects at the price point fixed by government would make them unviable. We had suggested increasing the commercial component to ensure viability. This hike will suit only medium and low potential cities,” said Pravin Jain, president, National Real Estate Development Council.
Experts termed the hike inevitable but burdensome. Vinod Behl said rising input costs could offset gains. “Prospective home buyers… are unlikely to get relief on availability while prices rise further,” he said.
Buyers said affordability would worsen. “The cost of an affordable 2 BHK house will now be around ₹35 lakh for a 500 sq feet house with balconies. This is going beyond affordable for many,” said Nishant Kumar from Mahendergarh.