By Ai Powered PMC Akbar Jiwani
Special Correspondent: Realestate for Realnewsofindia.com
NEW DELHI: The Union Government has approved more than 1.93 lakh additional houses under the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, taking total sanctions under the mission to 20.80 lakh homes. The Ministry of Housing and Urban Affairs (MoHUA) announced the approvals after the 10th meeting of the Central Sanctioning and Monitoring Committee (CSMC) in New Delhi, chaired by Satendra Singh, Secretary, Department of Urban Development.
The new sanctions fall under two verticals, Beneficiary-Led Construction (BLC) and Affordable Housing in Partnership (AHP), and will benefit eligible Economically Weaker Section (EWS) families in 11 states and Union Territories.
STATE-WISE SANCTIONS
Uttar Pradesh received the largest share with 73,182 houses, followed by Bihar with 52,866. The other states are:
– Telangana: 18,120
– West Bengal: 16,559
– Gujarat: 14,290
– Andhra Pradesh: 6,560
– Chhattisgarh: 4,670
– Odisha: 3,126
– Karnataka: 3,116
– Mizoram: 1,003
– Sikkim: 29
Together, Uttar Pradesh and Bihar account for roughly two-thirds of the latest batch, which underlines the mission’s focus on states with large urban housing shortages.
ABOUT THE SCHEME
Launched in September 2024, PMAY-U 2.0 aims to help one crore additional urban families build or buy a pucca house. It covers EWS, Low Income Group and Middle Income Group households with annual income of up to Rs 9 lakh. Central assistance of up to Rs 2.50 lakh per family is available, subject to component rules and eligibility.
Official data show that about 20.16 lakh sanctioned houses, roughly 97 per cent, are allotted to women, individually or jointly. Senior citizens have been sanctioned 1.81 lakh houses. Houses for Scheduled Castes number 3.61 lakh, for Scheduled Tribes 1.06 lakh and for Other Backward Classes 9.14 lakh. These categories overlap and should not be added together. Across PMAY-U and PMAY-U 2.0 combined, over 1.27 crore houses have been sanctioned and 1.01 crore completed.
The Secretary stressed close coordination among the Ministry, States, Union Territories and Urban Local Bodies so that housing proposals are submitted and processed on time.
WHY IT MATTERS FOR REAL ESTATE
The announcement comes at a time when the market is sending mixed signals. Knight Frank India data for Q3 2026 show sales of 86,767 units across eight cities, down 1 per cent year-on-year, with homes priced above Rs 1 crore making up 56 per cent of sales while sales below Rs 1 crore fell 10 per cent. Unsold stock below Rs 50 lakh stands at 169,571 units, which would take about 9.4 quarters to clear. Anarock Research, meanwhile, reported a 3 per cent rise in sales to about 1.00 lakh units in the top seven cities, with average prices up 7 per cent to Rs 9,714 per sq ft.
Separately, the RBI raised the repo rate by 25 basis points to 5.50 per cent on 7 October, its first hike in nearly four years, which could push up floating-rate home loan costs.
Against this backdrop, government-backed affordable housing offers a counter-cyclical support for the lower end of the market, where private supply has been squeezed by rising land and construction costs. Developers, building-material suppliers and housing finance companies in Uttar Pradesh, Bihar and Telangana stand to see steady, demand-led activity from the new sanctions.
A NOTE OF CAUTION
Sanctions are not the same as completed or occupied homes. Delivery speed, timely release of central and state funds, land availability and the capacity of urban local bodies will decide how quickly these approvals turn into keys in the hands of families.
Sources: Ministry of Housing and Urban Affairs announcement via All India Radio (https://www.google.com/url?q=http://newsonair.gov.in&source=gmail&ust=1793410961926000&sa=E), 17 Oct 2026; Organiser, 19 Oct 2026; The Right News, 17 Oct 2026; Knight Frank India Q3 2026 survey via Gulf Today, 24 Oct 2026; Anarock Research via Business Today, 29 Sep 2026; Business Today / NoBroker report on RBI policy, 7 Oct 2026.
Article written by Ai Powered PMC Akbar Jiwani, Special Correspondent: Realestate for Realnewsofindia.com
