No New Affordable Housing Projects in Gurugram & Faridabad for Two Years

For middle-class families in Gurugram and Faridabad, the dream of owning a home is becoming increasingly elusive. Despite government promises, affordable housing projects have remained stagnant for nearly two years, leaving many aspiring homeowners frustrated and locked out of the market.

Rising land prices, escalating construction costs, and strict government pricing caps have combined to stall new project approvals. As a result, the affordable housing policy, intended to support first-time buyers and young families, is failing to deliver tangible benefits on the ground.

Why affordable housing projects have stalled

Under the current policy framework, the maximum sale price for affordable homes is capped at Rs 5,000 per sq ft. While the intention is to keep homes within reach of middle-class buyers, developers argue that escalating land and construction costs make it impossible to build at these rates.

Industry sources confirm that no new licenses for affordable housing projects have been issued in Gurugram or the Gurugram-Manesar master plan area in the last 18–24 months. Rising costs, combined with regulatory hurdles, have led to a near-freeze in new project launches.

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Homebuyer frustration grows

Prospective homeowners are feeling the pinch. “We have been waiting for affordable housing projects for years, but there is hardly anything new. The few options available are priced at Rs 2–3 crore, which is completely beyond our budget,” said Rajesh Kumar Srivastava, a resident of Sector 70.

Another buyer, Abhishek Singh, a real estate consultant, added, “The policy was designed with good intentions, but if the government fixes prices that developers cannot work with, then no one will build affordable homes. Ultimately, buyers like us suffer.”

Policy background and its intended beneficiaries

The state’s affordable housing policy was launched to provide budget homes to salaried professionals, young families, and first-time buyers. The capped pricing mechanism aimed to make homes accessible while encouraging developers to invest in the segment.

However, with no fresh launches in nearly two years, the policy is increasingly seen as a “paper promise” rather than an actionable scheme. Middle-class families, who are the intended beneficiaries, are facing the harsh reality of being priced out.

Developer constraints and market realities

Developers highlight several challenges in constructing affordable housing projects under the current pricing regime. Land costs in key sectors of Gurugram have more than doubled over the last five years, while construction expenses have risen by 25–30%.

At capped rates, a 600–700 sq ft flat costs around Rs 32–37 lakh, leaving little margin for land acquisition, construction, and timely delivery. As a result, developers are prioritising premium and luxury projects along growth corridors like Dwarka Expressway and Sohna, where margins are higher.

Industry expert insights

Industry leaders stress that affordable housing demand remains strong. “If the government revises the pricing in line with rising costs, developers can re-enter the segment and revive new project launches,” said a city-based developer.

MS Mittal, Chairman of ROF Group, said, “The policy helped thousands of families, but it must evolve with market realities. Timely amendments are essential to sustain developer interest and encourage fresh investments.”

Vikas Garg, Joint MD of Ganga Realty, added, “Rising land, construction, and compliance costs have made affordable housing projects less viable in Gurugram. Supportive policy revisions are needed to ensure housing remains accessible near employment hubs.”

Suggested policy reforms

Experts and homebuyers alike are urging the government to:

• Increase the maximum sale price by at least 25%
• Allow continuous approvals for affordable housing projects
• Provide incentives to developers to re-enter the segment
• Promote balanced urban growth by ensuring affordable options near major employment zones

Such steps could rejuvenate the segment and prevent middle-class families from being permanently priced out.

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Impact on urban growth and buyers

The lack of new affordable housing projects threatens to distort housing accessibility in Gurugram and Faridabad. Without timely intervention, the gap between market prices and policy-capped rates may continue to widen, leaving a growing number of families unable to buy their first home.

Balanced urban planning requires that affordable housing remains viable alongside premium developments. Without policy adjustments, the promise of homeownership for middle-class residents risks becoming increasingly unattainable.

Conclusion

The absence of new affordable housing projects over the past two years highlights the urgent need for policy recalibration. Rising costs, stagnant approvals, and misaligned price caps are preventing middle-class families from entering the property market.

To revive affordable housing in Gurugram and Faridabad, the government must align policy with ground realities, incentivise developers, and ensure a steady pipeline of budget-friendly homes. Only then can the dream of homeownership become a reality for India’s middle class.