Faridabad residents looking to buy affordable homes are facing a serious crisis. In the last 18 to 24 months, the city has seen no new launches of affordable housing projects. Both buyers and agents agree this halt effectively excludes the middle class.
No New Projects in Two Years
Recent market analyses and industry updates show that Faridabad hasn’t had a single new affordable housing project in almost two years. The existing options in the sub-600 sq ft category are either sold out or booked, leaving limited choices for families earning between about ₹7 lakh and ₹15 lakh each year.
Real estate agents report that many potential buyers have delayed their purchase plans, with some postponing by up to two years, as they struggle to find genuine affordable units within their price range. A few buyers are now waiting for new listings, uncertain about when they might appear.
Price Cap Meets Rising Costs
At the centre of this deadlock is Haryana’s affordable housing policy, which sets a price ceiling of around ₹5,000 per sq ft for eligible developments. Ideally, this limit should keep homes affordable for average earners. However, developers claim that increasing land and construction costs have squeezed their profit margins.
Consultants and builders note that expenses for land acquisition, raw materials, labour, and regulatory compliance now take up a much larger part of the project cost than when the cap was first introduced. As a result, many developers argue that sticking to ₹5,000 per sq ft makes affordable schemes commercially unfeasible, leading them to postpone or scrap such projects entirely.
Middle Class Gets Priced Out
Although the policy aims to assist the middle class, its unintended consequence in Faridabad has been the reverse: middle-class buyers are being pushed out of the market. With no new launches, the resale and semi-resale markets experience noticeable bidding wars, driving benchmark prices up.
Many first-time buyers now face a tough choice: move into more expensive segments with higher EMIs or keep renting, hoping that developers and policymakers will work together. For young professionals and small families, this situation creates a real sense of housing insecurity.
Industry Calls for a 25% Cap Hike
Real estate associations and independent experts are now calling on the Haryana government to raise the price cap by at least 25%. They argue that a higher cap would make it feasible for developers without completely sacrificing affordability for buyers.
Suggestions also include making the policy more stable and predictable, rather than tied to temporary schemes or limited time frames. A stable, long-term policy could encourage developers to invest in land and capital specifically for affordable housing, ensuring a consistent flow of projects rather than sporadic occurrences.
As Faridabad’s housing crisis worsens, the demand for a revised affordable housing policy becomes increasingly urgent. If the cap isn’t increased and land prices stay high, the city could face an extended supply shortage in the segment that is most needed by its younger workforce.