GURUGRAM: There is an increasing demand to reassess Haryana’s affordable housing policy, as stakeholders report that the initiative has nearly come to a standstill in Gurugram and Faridabad due to escalating land and construction costs, according to an official.
Officials from the Town and Country Planning (TCP) Department noted that no new licenses for affordable housing projects have been issued in Gurugram in the last one-and-a-half to two years. Furthermore, the Gurugram-Manesar Master Plan area has not witnessed any new affordable housing developments during this time, casting doubt on the policy’s effectiveness.
Currently, the government has set the maximum sale price for affordable housing units at Rs 5,000 per square foot in Gurugram and Faridabad. However, real estate experts have indicated that land prices in many Gurugram sectors have more than doubled over the last five years, with construction costs rising by 25-30%.
As per existing norms, a 500-800 square foot affordable housing flat is priced between Rs 26 lakh and Rs 35 lakh. Developers insist that constructing projects at these prices has become economically unfeasible due to the significant rise in input costs.
Residents have also voiced their concerns over the slowdown in new projects.
Kapil Singh, who lives on Sohna Road, mentioned that the middle class has been waiting for new affordable housing options for years, but new launches have nearly stalled. He stressed that while the government’s commitment to providing affordable homes is commendable, the policy must be adapted to align with current market conditions to achieve real results.
Abhijeet Ahuja, a resident of Sector 14, emphasized the need for timely revisions to the policy to incentivize developers and facilitate new project launches.
Industry groups and developers have upped their calls for a revision of the pricing structure. They are advocating for a minimum 25% increase in the prescribed sale rates and have urged the government to maintain an open and ongoing policy framework to ensure sustained developer involvement.
ROF Group Chairman M S Mittal remarked that while the policy was designed with good intentions and has benefited countless families, regular updates are crucial to keep it relevant and attractive for investment.
The necessity for rate adjustments under the affordable housing policy was prominently discussed by the National Real Estate Development Council (NAREDCO) during a meeting with the Haryana Chief Minister in Chandigarh on December 17, 2025, according to sources.
