One of the main dockets of the current government is to avail ‘Housing for All by 2022’, which was mentioned in 2015. This scheme is primarily targeting two crore homes to be built across all urban locations over the next five years. The government has put up enormous efforts to make this agenda helpful for the general as developer and investors are getting drawn out into these realty sectors. Affordable housing is gearing up the denizens to invest in these properties, which are below the horizon of their budget with the ease of cheap finance. According to an India Ratings and Research report, affordable housing finance is set to be a Rs 6 trillion market by 2022. The research agency has also anticipated a whopping demand for 25 million homes in the medium-income group (MIG) and lower-income group (LIG) categories over the coming years.
The government is reaching out to developers to make ‘Housing for all by 2022’ a reality. Most of these projects are being undertaken by PMAY and buyers can get the credit-linked subsidies. An additional incentive of 39 per cent higher allocations was announced for affordable housing development this financial year under the Pradhan Mantri Awas Yojana (PMAY), announced by the Prime Minister Narendra Modi. The scheme envisages the vision of Housing for All by the year 2022. Another one is the newly projected Public-Private Partnership Model (PPP) of development. Elaborating PPP is a broad term that can be applied to anything from a simple, short-term management contract to a long-term contract that includes funding, planning, building, operation, maintenance, and divestiture.
Ssumit Berry, Managing Director, BDI Group, says: "This is a much-needed decision by HUPA. A PPP model will aid the PMAY, and provide a much-needed push to affordable housing. PPP will increase the private sector's role in the vision of the Union government in providing everyone with a house. It will also help in overcoming the challenges faced by the real estate sector in constructing affordable housing." Affordable housing is an emergence towards a better India. This effort has been bestowed into existence to bring home to the country of 1.3 billion people and is likely to bring a colossal $1.3 trillion wave of investment to the housing sector over the coming years. “Developers across India seem to be moving toward affordable housing sector to befit middle-class pockets as this segment is expected to grow with 39 per cent higher allocations, under the PMAY. All these have resulted in the uptick in the home loans resulting into the engines of growth for this sector benefitting both developers and home buyers, says Berry.