GURUGRAM: The dream of affordable housing is fading for homebuyers. What was once a hopeful promise is quickly becoming a distant mirage for many middle-class families in Gurgaon and Faridabad.
For potential buyers, the situation is increasingly frustrating. “We’ve been waiting for affordable projects for years, but there are hardly any new launches. The available options are priced at Rs 2–3 crore, far beyond our budget,” lamented Rajesh Kumar Srivastava, a Sector 70 resident employed in the private sector.
The state’s flagship housing policy has not produced new projects, even as property prices climb beyond reach. This policy aimed to provide budget homes for salaried professionals, young families, and first-time buyers. However, with no new projects in the last two years, many homebuyers feel the scheme has morphed into a “paper promise” that fails to deliver real solutions.
Currently, the government has limited the maximum sale price to Rs 5,000 per sq ft in Gurgaon and Faridabad. Unfortunately, rising land and construction costs are making it challenging for developers to create homes at these prices, leading to a virtual standstill in new project approvals. Officials from the town and country planning department acknowledged that no new affordable housing licenses have been granted in the Gurgaon or Gurgaon-Manesar master plan areas in the past 18-24 months.
For aspiring homeowners, the stakes are escalating. With prices soaring and the supply of affordable housing dwindling, many fear they will soon be excluded from the property market unless the policy is updated. Abhishek Singh, a real estate consultant, remarked that while the intent behind the policy is commendable, it has not kept pace with market conditions. “If the government sets prices too low for developers to work with, it simply won’t happen. Ultimately, it’s buyers like us who end up suffering,” he noted.
Industry experts report that land prices in several sectors of Gurgaon have more than doubled in the past five years, and construction costs have risen by 25–30%. Based on current policy rates, a 600–700 sq ft flat is priced around Rs 32–37 lakhs, but developers argue that such pricing barely allows for land acquisition, construction, and timely delivery, resulting in stalled launches.
Piyush Garg, an interested buyer from New Delhi, stressed the urgent need for a policy revision. “The middle class relies on these schemes to secure their first home. If the regulations aren’t updated, affordable housing will remain a mere concept,” he stated.
Homebuyers and industry representatives are now calling for the government to increase the sale price cap by at least 25% and to make the policy more flexible to ensure a continuous flow of projects. Developers maintain that demand remains strong and would be inclined to return to the segment if prices aligned with current market realities.
MS Mittal, Chairman of ROF Group, highlighted that while the policy was conceived with good intentions and has helped many families become homeowners, it must adapt to market conditions. “Timely adjustments are necessary to stimulate new investments and retain developer interest,” he asserted.
Vikas Garg, Joint Managing Director of Ganga Realty, added, “Increasing land, construction, and compliance costs have rendered affordable housing projects less viable in Gurgaon, prompting developers to move new projects to peripheral areas. There is a growing demand for premium and luxury housing along critical corridors such as the Dwarka Expressway and Sohna. Policy support is essential to revitalize affordable housing near major employment zones and promote balanced urban development.”
Another local developer echoed that the demand for affordable housing in the Gurgaon, Faridabad, and Sohna regions remains robust. “If the government realigns prices with the rising costs of land and construction, developers could re-enter the market and revitalize new project launches,” he stated.
