Affordable Housing an Urgent Need for all Indian Cities

Urgent need of affordable housing

Rent  or  Smaller  House 

       Affordable housing in the last couple  of years has been the most discussed  topic in CREDAI as well by many analyst.  Infrastructure  industry leaders  like to believe that there has been a lot of progress on the affordable housing front but the fact is that a lot more needs to be done to meet the actual demand  of  the mass youth.

      Studies  showing a  demand for  1.2  Crore  affordable homes and the demand for these homes comes from buyers with a monthly  income of   Rs 15,000-25,000 range.

This affordable housing Schemes will be a solution for the people  to move away from  renting in poor areas with high rentals, providing a build home with clear title,  lighting, water and electricity.

Small Flats with a size range of 230 sqft – 275 sqft will be an ideal space range for this income group. Which can be purchased at a cost of  8 – 10 lakhs max.

Research analyst are worked and found this pocket are free for Developers to Enter. But the hindrance may be the Profit margin on each unit may be very negligible.

Low income housing Profit margin are much  low, which could be a deterrent for developers to get into this segment. “It would help if the government declared real estate as an industry. This will allow real estate players to get capital at cheaper rate and more easily. Eventually, it will help in reducing prices of homes,” says Geetamber Anand, president, CREDAI.

Another big problem with low income housing is that 70 per cent of low income people don’t have access to home loan. According to industry experts, inefficient government policies are also hampering the development of affordable housing. We also see other problem with government norms. When you develop a low-cost housing, the norms should be different than the one apply to the high income group.

Whether it is low-income or high end Housing , certain development such as road width, parking, documentation, etc also required. There require  more incentive to do authorised development rather than unauthorised developments.

“Also, because people don’t want to buy homes far away from their workplace is also a reason that not many affordable homes have come up”, says Manish Srivastava, CEO Muthoot Housing Finance Company Ltd. “So, you need good infrastructure as well to encourage housing to come up near all cities,” he says.

Every Indian City must have this kind of Low income accommodations for the future of the youth coming to City in search of Job and picking up mid level or low  paid Jobs. Helping them to invest rather than paying heavy rents for prolonged period. I’m sure such schemes are extremely ideal for  beginners to  start with and later on  move  to a bigger one as most of us dream.