India's urban housing story: Over 1 cr homes completed, more families targeted

India’s urban housing story now spans self-built homes, affordable projects, rental housing and home-loan support under PMAY-U 2.0.

India’s urban housing story has moved beyond simply building homes, with the government’s flagship housing programme now covering everything from self-construction to affordable housing projects, rental homes and interest support on home loans.Under Pradhan Mantri Awas Yojana-Urban (PMAY-U) and its second phase, more than 1 crore houses have been completed and delivered, while 1.25 crore houses had been sanctioned as of August 9, 2026, according to government data released by the Press Information Bureau (PIB). PMAY-U 2.0 aims to support another 1 crore families through its four verticals.

Beneficiary-Led Construction: Up to Rs 2.5 lakh for EWS families building on own land

Beneficiary-Led Construction (BLC) is meant for EWS households that already own land and want to build a house on it.

Financial assistance can go up to Rs 2.5 lakh, while the completed dwelling can have a maximum carpet area of 45 sq metres.Of the 18.38 lakh houses sanctioned under PMAY-U 2.0 by August 9, 14.40 lakh were under BLC. Households owning pucca homes of less than 21 sq metres may also be considered for expansion up to 30 sq metres, subject to the scheme conditions.Affordable Housing in Partnership: Subsidy for EWS buyers in project-built homesAffordable Housing in Partnership (AHP) applies to EWS beneficiaries purchasing homes developed as affordable housing projects rather than constructing on their own plots.

Public or private agencies can build units with carpet areas between 30 and 45 sq metres, with combined assistance from the Centre and states going up to Rs 2.5 lakh for each eligible unit.About 2.48 lakh homes had been sanctioned under AHP as of August 9. Unlike BLC, which is linked to construction on a beneficiary’s own land, AHP connects government assistance to homes supplied through organised projects.

Affordable Rental Housing: Rental homes for migrants and low-income urban workers

Affordable Rental Housing (ARH) is meant for EWS and LIG households that require rental accommodation rather than an owned home.

Intended beneficiaries include migrants, homeless people, working women, industrial and construction workers and people earning livelihoods in the informal or contractual economy.The housing is also expected to have basic infrastructure such as water supply, sanitation, sewerage or septage systems, internal roads and health facilities. About 13,046 dwelling units had been sanctioned under the rental housing component by August 9.

Interest Subsidy Scheme: Home-loan support for EWS, LIG and MIG borrowers

The Interest Subsidy Scheme (ISS) works through the housing-finance system and covers eligible home loans taken by EWS, LIG and MIG households. To qualify, the loan must have been sanctioned and disbursed on or after September 1, 2024 and have a tenure of more than five years.The benefit applies to eligible loans for the purchase, repurchase or construction of a house. Around 1.36 lakh houses had been covered through the interest subsidy component by August 9.The housing programme has also increased the role of women in formal property ownership. Of the 1.25 crore homes sanctioned across PMAY-U and PMAY-U 2.0, 1 crore had been allotted either in the name of the female head of the household or in joint ownership, according to PIB.Digital monitoring has become another part of programme delivery, with PMAY-U 2.0 using a common platform connecting applicants, urban local bodies, states, Union Territories and implementing agencies. Construction can be geo-tagged and tracked through five stages, while the first PMAY-U phase remains open until September 2026 for already sanctioned homes and PMAY-U 2.0 continues through 2029.