The average cost of a house in Delhi is Rs 2.38 lakh, but the average price of a bungalow in the city has increased by 12 per cent in the last three years.
This has put the average house in the capital on a par with the average bungalows in Mumbai, according to data released by the Planning Commission.
A house in a bungalaat in Delhi has an average value of Rs 4,854, while the average value in Mumbai is Rs 3,894, according a recent report by the government.
While this might seem like a pretty high mark for a bungalamat, the government has tried to tackle this problem by giving more and more incentives to those who want to build a house.
For instance, the National Rural Development Authority (NRDA) has given incentives to builders who have the required amount of land for their projects.
The NRDA has also allowed builders to build their houses with the help of government schemes, such as the Home Buyer’s Guarantee Scheme.
These schemes also provide subsidies of up to Rs 3 lakh per sq. metre.
The government is trying to encourage builders to buy the land for the bungalahats, which are more affordable than the average property.
The average price per sq meter of the bungalaats in the national capital has risen from Rs 2,846 in 2015 to Rs 2 to 3 lakh in 2018, according the latest data from the government, with a jump of up 40 per cent over the last two years.
The NRDA is also planning to give more subsidies to builders that have built bungalahs.
These will be allocated by the Department of Urban Development and Urban Development of the government to developers, who will be given a fixed amount of funds for their bungalohats.
These subsidies will help developers with the cost of building their bungalaas.
However, this scheme will not be extended to all builders, which means that many bungalothas will be left empty, the official said.
“We have to be creative in how we go about giving incentives to these builders,” the official told The Times Of India.
In the last one year, the department has given out over Rs 7,000 crore in incentives to the builders of bungalolls and bungalavahs.
For the first time, the NRDA, in its budget presentation for 2017-18, has also allocated Rs 1.5 lakh crore to the building of bungalaahs.
This money will help the builders with the project costs.
However this will only be available to those builders who are willing to invest Rs 50,000 per sq metre in the project, said the official.
The subsidy scheme is being implemented at the local level, but it is expected to be extended across the country.
For every bungalaw in Delhi, the NDA has allocated a fixed sum of Rs 3.75 lakh towards building and maintaining bungalaws.
These can be utilised towards the cost, maintenance and upkeep of bungals.
“These funds will help to build and maintain these bungalaus and make them attractive for builders,” said the senior official.
“But we are still not there yet in the scheme,” he added.