The affordable housing scheme launched by Haryana to expand low-cost homes in the National Capital Region (NCR) has stalled as rising land and construction costs have eroded margins and delayed construction. Developers and municipal authorities have reported that escalation in input costs and constrained land supply have made planned projects financially unviable in several NCR cities. As a result, sanctioned projects are facing slow progress and timelines for allotments have been pushed back. The standstill has affected both new schemes and ongoing phases intended to meet housing demand for lower and middle income households.

The slowdown has led to a bottleneck in approvals and a reassessment of viability by builders who had earlier committed to fixed price offerings. Prospective beneficiaries are experiencing longer waits for allotment and uncertainty on delivery schedules, which could undermine confidence in affordable housing initiatives. Lenders have also become cautious, prompting developers to seek extended timelines and revised financing terms. Local administrations are feeling pressure to balance the objectives of fiscal prudence with the social priority of affordable housing.

Haryana officials and industry representatives are examining a range of measures to revive activity without compromising standards or fiscal discipline. Options under consideration include revisiting land pooling arrangements, providing targeted time bound incentives, enabling quicker clearances and facilitating access to lower cost credit for developers. Emphasis is being placed on improving project planning to reduce delays and on encouraging innovative construction methods to contain costs. Any policy response will require coordination with neighbouring urban bodies in the NCR to ensure land use planning and infrastructure support are aligned.

Stakeholders warn that restoring momentum will need sustained engagement and calibrated policy adjustments rather than short term fixes. The outcome will determine whether the scheme can still deliver on its objective of expanding access to affordable housing for lower and middle income households in the region. Monitoring of implementation and transparent timelines will be essential to rebuild market confidence.