Affordable housing delivery in Haryana’s National Capital Region has slowed to a near standstill, exposing a widening gap between policy intent and market realities in some of the country’s fastest-growing urban centres. In Gurugram and Faridabad, developers and planners say rising land values and construction costs have rendered the state’s current affordable housing framework increasingly unviable.
Officials overseeing urban planning approvals confirm that no fresh affordable housing licences have been issued in Gurugram for over a year, with the wider Gurugram–Manesar planning area seeing no new project launches under the scheme. The slowdown has raised concerns about whether existing price controls, designed to protect homebuyers, are now inadvertently constraining supply. Under prevailing norms, sale prices for affordable homes in these NCR cities are capped at Rs 5,000 per square foot. While this benchmark was considered workable when introduced, market analysts point out that land prices across multiple sectors have risen sharply over the past five years. At the same time, construction costs driven by material inflation, labour shortages and compliance expenses have climbed significantly, eroding already thin developer margins. As a result, the cost of delivering compact homes typically sized between 500 and 800 square feet now approaches or exceeds the permitted sale value. Developers argue that continuing projects under current limits would lead to financial losses, prompting many to delay or abandon affordable housing plans altogether. The impact is increasingly visible at the household level. Middle-income and lower-middle-income families seeking ownership housing within commuting distance of employment hubs report fewer new options entering the market.
Urban researchers warn that prolonged stagnation in affordable supply could push households towards informal rentals, longer daily commutes or overcrowded living conditions outcomes that carry social, economic and environmental costs. From a planning perspective, the slowdown risks undermining broader urban sustainability goals. Affordable housing located near job centres is critical for reducing travel distances, lowering transport emissions and maintaining workforce stability. When such housing fails to materialise, cities tend to sprawl outward, increasing pressure on roads, utilities and regional ecosystems. Industry bodies have urged the state government to revisit pricing norms and adopt a more flexible, ongoing policy framework rather than time-bound or sporadic windows. Proposals under discussion include revising sale price caps to reflect current input costs and introducing automatic review mechanisms linked to inflation and land indices. Urban policy experts argue that periodic recalibration is essential if affordable housing is to remain viable in high-growth corridors like the NCR. Without timely course correction, Haryana risks widening the affordability gap in cities already grappling with congestion, air quality challenges and unequal access to housing.
Looking ahead, stakeholders say a revised policy that balances buyer protection with economic feasibility could restart stalled projects and restore confidence among developers. For Gurugram and Faridabad, aligning housing policy with real market conditions will be critical to sustaining inclusive, low-carbon urban growth in the years ahead.
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