By AI Powered PMC Akbar Jiwani, Special Correspondent – Real Estate, Realnewsofindia.com
Sanctions now exceed 1.27 crore houses nationwide; 18.77 lakh homes approved under the new 2.0 mission as government pushes on-ground execution
New Delhi, 29 September 2026: As the extended implementation period of the original Pradhan Mantri Awas Yojana–Urban (PMAY-U) reaches its 30 September 2026 deadline, the Centre’s urban housing mission stands at a milestone moment: close to one crore homes handed over to urban families, and a second-generation scheme, PMAY-U 2.0, now carrying the mission forward.
According to Ministry of Housing and Urban Affairs (MoHUA) data as of 13 July 2026, cited in a September analysis by the Observer Research Foundation, about 127.68 lakh houses have been sanctioned under the combined mission, 121.02 lakh grounded, and 99.07 lakh completed or delivered. These totals include 16.20 lakh sanctions under PMAY-U 2.0. The Centre had extended the implementation timeline to 30 September 2026 so that houses under construction could be completed and funds released for pending projects, as stated in Parliament by Minister of State for Housing and Urban Affairs Tokhan Sahu.
PMAY-U 2.0 gathers pace
PMAY-U 2.0, approved by the Union Cabinet in August 2024, targets one crore additional urban families over five years, with an estimated outlay of Rs 10 lakh crore and central assistance of about Rs 2.3 lakh crore. It serves economically weaker sections (EWS), low-income groups (LIG) and middle-income groups (MIG) who do not own a pucca house anywhere in India, through four verticals: Beneficiary-Led Construction, Affordable Housing in Partnership, Affordable Rental Housing, and an Interest Subsidy Scheme. Under the interest subsidy, eligible households with annual income up to Rs 9 lakh receive a 4% subsidy on the first Rs 8 lakh of a home loan.
The Central Sanctioning and Monitoring Committee (CSMC) held its ninth meeting in New Delhi earlier this month under MoHUA Secretary Satendra Singh, clearing nearly 29,000 more houses for Assam, Bihar, Gujarat, Telangana, Tripura and Uttar Pradesh. Cumulative approvals under PMAY-U 2.0 have now crossed 18.77 lakh houses, up from 13.61 lakh in February 2026, when a single sitting sanctioned 2.88 lakh homes across 16 states and UTs. Officials have called for “concerted efforts to ensure the timely and effective implementation and monitoring” of the scheme.
Inclusive by design
Ministry data shows that around 96% of houses sanctioned under the mission are allotted in the name of the female head of household or jointly, with about 22% going to Scheduled Caste and 5% to Scheduled Tribe beneficiaries. Priority is also extended to senior citizens, persons with disabilities and transgender applicants.
Challenges that remain
The ORF analysis flags issues the next phase must address. Occupancy of completed houses has been a concern: a 2024 parliamentary standing committee noted that 4.6 lakh of 9.69 lakh completed ISSR and AHP houses were unoccupied, largely due to incomplete civic infrastructure and allotment delays, though the latest data shows 94.2 lakh of 96.65 lakh completed houses occupied by January 2026. Fund utilisation has also lagged, with revised 2025-26 spending of Rs 7,900 crore against a Rs 25,794 crore budget. On rental housing, the estimated shortfall of 70 lakh units compares with just over 87,000 units approved or converted so far.
What it means for real estate
For developers, the affordable and rental segments offer a steady government-backed pipeline, while the interest subsidy supports demand among first-time middle-income buyers. Industry watchers will look to see whether the Centre announces a further extension or a formal closure of the legacy scheme, and how quickly states convert sanctions into completed, occupied homes.
Note to editor: Figures vary by reporting date and tally (e.g., 122.50 lakh and 127.68 lakh total sanctions in different reports); please verify against the latest MoHUA/PIB release before publishing. Reports differ on whether the 30 Sept 2026 extension applies to the original PMAY-U or to 2.0; ORF describes it as applying to the original scheme.
