Archive · 15 Jun 2025
Kerala Builders Seek PMAY Price Cap Revision
Builders in Kerala are asking the government to increase the price limit for affordable homes under a program called PMAY.
The current price limit of ₹45 lakh was set many years ago.
Since then, it's become much more expensive to build houses.
They say that building affordable homes within the current price limit is difficult.
If the price limit is raised, more people could buy homes at a lower tax rate and the construction business would grow.
Kerala builders are requesting a revision to the affordable housing price cap under the PMAY scheme.
The current price cap of ₹45 lakh, set in 2015, has not been adjusted.
Construction costs, land prices, labor wages, and raw material costs have increased by 30-35% post-Covid.
Homes within the ₹45 lakh price cap qualify for a 1% GST rate, while those above attract 5%.
An upward revision is sought to benefit more homebuyers and stimulate the construction industry.
- Who
- Kerala-based builders, including Confident Group.
- What
- Kerala builders are seeking a revision of the affordable housing price cap under the Pradhan Mantri Awas Yojana (PMAY) scheme.
- When
- The article was published on June 15, 2025.
- Where
- Kerala.
- Why
- To address increased construction costs and make affordable housing more viable.
Builders' Perspective
Not Available
Price Cap Adjustment
Builders' Perspective
Increase price cap to account for rising costs and make affordable housing viable.
Not Available
Not mentioned in the article.
- Price Cap (Original)
- ₹45 lakh
- Price Cap (Current)
- ₹45 lakh
- GST Rate (Below Cap)
- 1%
- GST Rate (Above Cap)
- 5%
- Cost Increase Post-COVID
- 30-35%
- Builder
- Confident Group