If we talk about affordable houses, it typically denotes the housing needs of the lower or middle income population. The government has taken a number of steps to make affordable housing a reality for all.
Budget 2017 has proposed infrastructure status for affordable housing, a long-standing demand of developers, and also increased the allocation for the Prime Minister Awas Yojana from Rs 15,000 crore to Rs 23,000 crore, bringing the country closer to realising the Housing for All mission by 2022. As part of this, 1 crore houses are to be built by 2019 in rural India for the homeless and those living in ‘kaccha’ houses.
“For private developers, affordable housing offers cheaper FSI but margins are thin since the real estate ecosystem does not provide streamlined processes, design and automation for construction works as mass volumes are required to make it a success,” said Vineet Relia, Managing Director, SARE Homes. Demand for affordable housing has amplified; people who migrate from small cities to big find it difficult to own a house. For such buyers, affordable housing is a mandatory choice.
“According to estimates, around 600 million people are expected to settle down in urban India by 2031, a rise of whopping 59 per cent over 2011. The current housing deficit in India stands at 19 million units, which in the absence of any meaningful intervention, is slated to double to 38 million units by 2030. Fortunately, the government is collaborating with private builders to make affordable housing a reality. The most important factor that has provided a fillip to affordable housing is granting of infrastructure status. RERA has also infused fresh hopes in home-buyers. With the government grating a slew of incentives to the sector, the sector has become a serious business arena for developers. According to a ICRA report, the affordable housing segment in India is set to grow at a faster pace than the rest of the real estate sector – at over 30 per cent in the medium term. Other factors that have given a fillip to affordable housing are massive urban inward migration,” said Ssumit Berry, Managing Director, BDI Group.
The RERA (Real Estate Regulatory Act) has been one of the biggest reforms that have heightened the real estate Industry in India. The pro-buyer attitude of this act has been highly appreciated by the investors. And, it is expected to drive the growth rate beyond expectation. Indian real estate had witnessed a downfall prior to this. But the industry has become more transparent and responsible with the latest reforms.
India introduced GST (Goods Service Tax) on July 1. It has replaced the multiple taxes levied by the Central and state governments and has subsumed of all the indirect taxes will boost the real estate industry especially affordable houses.
“The gateway of Rajasthan, Bhiwadi has slowly emerged as a great investment zone for home buyers. Offering all the lifestyle amenities found in a metro setting at comparatively lower prices makes it one of the most affordable destinations in the market. Its close proximity to the Gurugram, DMIC and Indira Gandhi International Airport make the region well connected. Due to this, the place has attracted a lot of industrial activity and is presently witnessing a robust development in the residential, commercial and industrial sectors. The area is proving to be a perfect option for those who have a dream to own their own homes,” said, Rohtas Goel, Chairman & Managing Director, Omaxe.
Seeing this, a number of developers are entering into the affordable housing segment; many of them are brands who were earlier largely into luxury segments. SARE Homes, BDI, Omaxe, etc, are some of the developers who are foraying into this sector with great interest to help a buyer fulfill his dream of having a home at an affordable cost.