Haryana’s affordable housing scheme stalled in NCR cities amid rising land, construction costs

The demand for a review of Haryana’s affordable housing policy has intensified, with stakeholders claiming that the scheme has been virtually stalled on the ground in Gurugram and Faridabad due to rising land and construction costs, an official said.

According to officials of the Town and Country Planning (TCP) Department, no new licence for affordable housing projects has been granted in Gurugram over the past one-and-a-half to two years. The Gurugram-Manesar Master Plan area has also not seen a single new affordable housing project during this period, raising questions over the viability of the policy.

Under the existing policy, the government has capped the maximum sale price of affordable housing units at `5,000 per square foot in Gurugram and Faridabad. However, real estate experts point out that land prices in several sectors of Gurugram have more than doubled over the past five years, while construction costs have increased by 25-30 per cent.

As per prevailing norms, a 500-800 square foot affordable housing flat is priced between Rs 26 lakh and Rs 35 lakh. Developers, however, say that executing projects at these rates has become economically unviable given the sharp rise in input costs.

Residents have also expressed concern over the slowdown in new projects.

Kapil Singh, a resident of Sohna Road, said the middle class has been waiting for years for new affordable housing options, but new launches have almost come to a halt. He said that while the government’s intent to provide affordable homes is commendable, the policy needs to align with current market realities to deliver results.

Abhijeet Ahuja, a resident of Sector 14, said timely amendments to the policy were necessary to encourage developers and for the launch of new projects.

Industry bodies and developers have now stepped up their demand for revising the pricing structure. Stakeholders have sought at least a 25 per cent increase in the prescribed sale rates and have also urged the government to make the policy open and continuous to ensure sustained developer participation.

ROF Group Chairman MS Mittal said the policy was framed with positive intent and had helped thousands of families, but periodic revisions were essential to keep it relevant and attractive for investment.

The issue of revising rates under the affordable housing policy was also raised prominently by the National Real Estate Development Council (NAREDCO) during a meeting with the Haryana Chief Minister in Chandigarh on December 17, 2025, sources said.