The favourable policy announced by the current government of owing affordable houses has got an upward shift over the past three years. The motto of announcing the policies such as Housing for all by 2022, Pradhan Mantri Awaas Yojna (PMAY) is to give push to affordable houses so that people can buy their dream home at affordable pricing.
According to Vineet Relia, Managing Director, SARE Homes, says, “Affordable housing is a necessity that needs to be fulfilled to bring back the real estate sector on track. The market is flooded with the high-end luxury housing, but the segment of affordable housing is evidently lacking in a few states. Once it gathers pace, affordable housing will not only enhance the basic quality of life, but also make good economic sense. Thankfully, affordable housing is drawing in lots of buyers as well as investors and realty majors are looking at enhancing their presence in this segment also.”
Sumit Berry, Managing Director, BDI Group, says, “With the government granting a slew of incentives to the affordable housing sector, it can be considered as the future of real estate. However, the government needs to look into the issue of rising land costs and should put in place a single-window clearance mechanism.”
The real estate sector was in the shadow and even people were not investing into it says industry experts. Pradeep Aggarwal, Co-founder and Chairman, Signature Global, adds, “The affordable housing mission has now gained momentum as both the government and financing institutions have put in motion various policies, benefiting the unprivileged section of the society. Due to these reforms, the real estate sector is likely to recover soon and will also regain the trust of buyers. The positive impact of the government policies is visible as more and more people are turning up to buy affordable homes.”
Due to the increased demand for affordable housing, Brijesh Bhanote, CMO, Paras Buildtech India, says, “With the rapid pace of urbanisation, rural to urbanisation, rural to urban migration and constraints in supply, the requirement for shelter has been growing, especially for the middle-and-lower income group of people. The scope in the affordable segment is immense as there has been a shift in demand from big-ticket size purchases from investors to end-users and potential homebuyers who mostly look for budget homes. This segment of housing is going to be the next big thing in the future as developers are also showing keen interest in taking up these projects.”
As every coin has two sides, similarly this policy also has some challenges to deal with. The lack of availability of land, rising costs, regulatory issues and lack of home finance are some of the challenges. And these challenges stop buyers to invest and purchase homes.
“Many developers are now eyeing this space due to huge demand and incentives offered by the government; also, these projects are located at leapfrogged locations that offer land parcels at economical prices for such projects. While these locations may offer cost effectives homes, the lack of physical and social infrastructure here remains a concern,” says Avnish Yadav.