India’s housing shortage stands at about 22 million homes as of today, at a rough estimate. Being interlinked to various factors like the income level, the kind of comfort, facilities, standard of living and amenities offered in that price range, idea of affordable housing in India is still very constrained.
The fact is that, affordable housing is a much needed concept that needs to be in full swing to bring the realty sector on track. The market being flooded with luxury housing options, the metros are witnessing a huge shortage in the budget housing segment. The segment is clearly in need of supply amplification which would only happen if more institutional funding were to start pouring into this segment.
With many new bold initiatives taken by the Central Government on the 2017 Union Budget, the real estate industry some reasons to cheer. This in-turn will help realty developers access funds at lower rates and would also open up additional avenues to raise funds. It is also very encouraging that many micro-finance companies have now come forward to help buyers from the economically weaker sections.
Shifting to affordable housing segment will also provide an appropriate option to diversify risks to the developers. Due to the lack of land within city limits, this will push developers to aggregate land at suburban locations where high-end projects might not be successful. Further, central and state governments should also provide incentives and boosting mechanisms for slum redevelopment, rental options for migrants, single window clearance for building etc. These steps are likely to give the much required additional push towards this area.
The market is now potentially on the verge of a major transformation, and this trend is expected to make a good economic sense and improve the quality of life. The benefits available now should be leveraged properly by the developers to derive maximum returns on projects. It also needs to be ensured that these benefits are shared equally with the customer, which would truly make affordable housing a reality. Whether you’re a first-time homebuyer or a seasoned investor, head over to Shriram Properties for your dream home.