The rise in demand and popularity of affordable housing has been a blessing in disguise to the real estate industry in India – it has not only revived the real estate sector but has taken it to new heights. From million-dollar, multi-storey bungalows to single-room flats, India has varied housing properties to meet the requirements of all.
The Rise in Demand and Need for Affordable Housing
For years, the real estate industry in India focussed on meeting the needs of the rich and the upper middle class. However, recently with incentives and subsidies offered by the government, like the “Housing for All by 2022” scheme, and other regulatory reforms like the grant of infrastructure status, many affordable housing projects are being developed in the country to meet the urban housing deficits. According to real estate experts, affordable housing is predicted to be the next big driver of Indian realty with huge potential for year-on-year growth. Recent real estate industry reports reveal that affordable housing projects are in huge demand not only at metros but also in Tier-II and Tier-III cities.
Affordable Housing Sheds its Down-Market Label
With the initiatives by the government like the Pradhan Mantri Awas Yojana, affordable housing is now considered a game changer of the real estate industry. Let’s look at the factors that have boosted the growth of affordable housing in the country.
Though affordable housing construction has existed for decades, the sector was plagued by several challenges like lack of land at affordable prices, high construction costs, low demand among buyers, etc. Further, unfavourable tax regimes and lack of subsidies and incentives to homebuyers kept property developers away from affordable housing.
Under the ‘PMAY – Housing for all Scheme by 2022, the government of India aims to build about two crore homes. Also, under the scheme, the government has provided various facilities and benefits like cheap source of funding to the affordable housing developers.
Availability of Subsidised Funding for Buyers
Under the PMAY, eligible applicants belonging to the EWS, LIG, and MIG can avail home loans at highly subsidised rates when purchasing affordable homes. This is a huge boon for first-time homebuyers as it effectively reduces their economic burden. Coupled with the availability of cheap finance, more and more first-time homebuyers are investing in affordable housing units across the country.
Affordable Housing – Creating a New Chapter in India’s Real Estate Sector
Over the course of past couple of years, affordable housing is under the spotlight and is likely to do so in the near future too. The housing shortage in India is huge, and with the government’s initiatives to bridge this gap, real estate experts predict that affordable housing units will see major investments over the next five to seven years.
Affordable housing is not only seeing a huge rise in demand among homebuyers but also among property developers. With rising urbanisation, regulatory support and increasing affordability, affordable homes are creating a new wave of growth in the Indian real estate sector.