In a bid to tackle ongoing parking challenges in affordable housing societies, the Haryana government has implemented a new mandate requiring real estate developers to provide one designated car parking space for each flat in their projects. This policy change aims to enhance the overall livability of affordable housing by ensuring that residents have sufficient parking facilities. However, industry experts caution that while the initiative may improve living conditions, it could also marginally increase the entry barriers for homebuyers, particularly in high-demand urban areas such as Gurugram.
The implementation of this parking requirement coincides with a revised price cap of ₹5,575 per square foot (PSF) for affordable housing in Gurugram. While this adjustment allows for slightly improved margins for developers, the additional costs associated with creating designated parking spaces—estimated to account for about 10% of the flat price—may ultimately lead to higher overall prices for prospective buyers. As Santhosh Kumar, vice chairman of ANAROCK Group, points out, these costs could render affordable housing options even less accessible to the average buyer, counteracting the intended benefits of the new policy.
The amendment to the Affordable Housing Policy, signed by Additional Chief Secretary (DTCP) Anurag Agarwal, formalizes the requirement for one parking space per unit, specifying that all parking slots must be clearly identified during the plan approval process. Previously, the provision of parking was left to the discretion of developers, which often led to inadequate parking solutions in many projects. The revised policy aims to address these shortcomings by ensuring that each flat has at least one dedicated parking space, thereby enhancing the overall living experience for residents.
While the new parking mandate has the potential to improve the quality of affordable housing, experts suggest that additional measures are necessary to make these projects more appealing to developers. Potential solutions include tax breaks and incentives for developers focusing on affordable housing, as well as the reintroduction of the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) for Economically Weaker Sections (EWS) and Lower Income Groups (LIG). Such initiatives could provide significant interest subsidies to buyers, thereby stimulating demand and making affordable housing more attainable. Furthermore, incentivizing developers through tax benefits, such as the 100% tax holiday under Section 80-IBA, could encourage increased investment in this vital segment of the housing market, ultimately benefiting both developers and homebuyers alike.