Affordable Housing India: Next Power House of Real Estate
Affordable housing India is the talk of the town as of the Government Schemes announced over the past three years. Some of the policy include “Housing for All by 2022“, “Pradhan Mantri Awas Yojana (PMAY)” which allows buyers to purchase their dream homes by taking PMAY Home Loans.
Developers have also received funding at lower rates that will induce them to construct more affordable homes. The Affordable Housing India segment will command a decent amount of share in the total residential sales due to increased participation from private and government support. India is facing a shortage of housing that can be met only by this mission.
Industry experts say that Real Estate has remained unorganized and unregulated for many years, Affordable Housing mission has now gained momentum. Due to this, the Real Estate sector is likely to recover soon.
With the rapid pace of urbanization, rural to urban migration and constraints in supply, the requirement for shelter has been growing, especially for Lower and Middle Income Group (LIG-MIG). 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.
Affordable Housing is a necessity that needs to be fulfilled to bring back the Real Estate sector on track. Once Affordable housing gathers pace, it will enhance the basic quality of life and make good economic sense.
However, the Affordable Housing sector involves numerous challenges, including lack of availability of land, rising construction cost, regulatory issues and lack of home finance, which impact the ability of buyers to purchase.
As of the Government granting loan incentives to the Affordable Housing sectors for Lower Income Group and Middle Income Group (LIG and MIG), it can be considered as the future of Real Estate. At the same time Government needs to look into the issue of rising land costs.