Haryana Affordable Housing Stalls in NCR Cities Due to Rising Land and Construction Costs

The Haryana affordable housing scheme has faced significant challenges in execution, with new project launches in Gurugram and Faridabad virtually coming to a standstill. Rising land prices and construction costs have created a substantial obstacle for developers, raising concerns about the policy's viability and limiting options for middle-class homebuyers in NCR cities.

Current Status of Affordable Housing in NCR

According to the Town and Country Planning (TCP) Department, no new licenses for affordable housing projects have been granted in Gurugram for the past one-and-a-half to two years. Similarly, the Gurugram-Manesar Master Plan area has not seen a single new affordable housing project during this period.

The policy caps the maximum sale price of affordable housing units at ₹5,000 per square foot in Gurugram and Faridabad. However, soaring land costs in several sectors of Gurugram, which have more than doubled in the last five years, coupled with a 25–30% increase in construction expenses, have rendered this cap economically unviable.

Currently, a 500–800 square foot affordable housing flat is priced between ₹26 lakh and ₹35 lakh under policy guidelines, but developers highlight that executing projects at these rates is not financially feasible.

Challenges Facing the Policy

The sharp increase in input costs has stalled new launches, frustrating prospective homebuyers. Residents have expressed growing concern over the slowdown in affordable housing projects. Kapil Singh, a resident of Sohna Road, noted, “The middle class has been waiting for years for affordable housing options, but new launches have almost stopped. While the government’s intent is commendable, the policy must reflect current market realities to deliver results.”

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Stakeholder Concerns and Demands

Developers and industry bodies are now calling for urgent revisions to the Haryana affordable housing scheme. Key demands include:

• Increase in Sale Price: Stakeholders are requesting at least a 25% increase in the prescribed maximum sale price to align with rising land and construction costs.
  
• Open and Continuous Policy: To ensure sustained developer participation, they have urged the government to make the policy open and continuous, avoiding prolonged freezes in new projects.
  

ROF Group Chairman M.S. Mittal stated, “The policy was framed with positive intent and has helped thousands of families, but periodic revisions are essential to maintain its relevance and attractiveness for investment.”

During a meeting with the Haryana Chief Minister in December 2025, NAREDCO also highlighted the urgency of revising pricing under the policy to boost project launches in Gurugram and Faridabad.

Government Response and Policy Outlook

The Haryana government’s affordable housing scheme was designed to offer budget-friendly homes to middle-class families in NCR cities. However, the gap between policy-set prices and actual market costs has stalled its execution. Officials and stakeholders emphasize the need for timely amendments to encourage developers and resume affordable housing projects.

Periodic reviews of the pricing structure, along with policy continuity, are expected to revive the sector and ensure that middle-class homebuyers have access to new affordable housing units.

Conclusion

The Haryana affordable housing scheme is a critical instrument to provide middle-income families with budget-friendly housing in NCR cities. However, rising land and construction costs have stalled its execution, leaving thousands of prospective buyers waiting. Aligning the policy with current market realities and implementing timely revisions will be essential to restore momentum, encourage developer participation, and ensure the success of affordable housing initiatives in Gurugram and Faridabad.