Centre to Persuade States to Lower Land Prices For Affordable Housing: Manohar Lal

New Delhi, September 1, 2025: Manohar Lal, Minister of Housing and Urban Affairs, has announced that the Centre, in consultation with states, will evolve a mechanism to ensure land prices for affordable housing projects are kept relatively lower than for other housing segments, particularly under the Prime Minister Awas Yojana.

At the valedictory session of the 17th NAREDCO National Convention, Lal announced his intent to convene a meeting of state housing ministers and senior policymakers to push for consensus on affordable land pricing. While he did not specify a timeline, he confirmed that such discussions would be accompanied by broader reforms aimed at accelerating housing activity nationwide.

The minister also noted that additional policy reforms would be initiated with relevant stakeholders at both the central and state levels to spur housing activities across the country.

Lal urged members of NAREDCO to raise this matter with state-level policymakers since land is primarily a state subject and the Centre has limited jurisdiction except to persuade states to relax land prices for affordable housing.

He further requested that once relaxed land prices are introduced, developers must ensure that affordable housing units are constructed at suitable sites. Choosing substandard locations, he cautioned, could dilute the credibility of the real estate sector.

The minister added that states implementing best practices in housing should serve as role models with a mechanism developed to replicate these practices across the country for holistic real estate growth.

G Hari Babu, President, NAREDCO, and Praveen Jain, chairman emeritus, welcomed the announcement, describing it as a positive step toward joint policy initiatives between the Centre and states for affordable housing.

On the subject of metro expansion, the minister informed that the metro rail network is expected to expand to nearly 1,500 km, up from the 1,036 km, in the next four to five years. He stressed the government’s focus on ensuring last-mile connectivity so that passengers can travel seamlessly and without inconvenience.