Affordable Housing: A Game Changer of Real Estate

-

In a country where the concept of housing ranges from hole-in-the-wall flats to billion-dollar homes, affordable housing could revive the fortunes of a flagging real estate sector. The affordable housing segment is expected to be the next big growth driver of the Indian economy with property pundits predicting a phenomenal growth rate of over 30% in the medium term.
According to Knight Frank India, a real estate consultancy, there has already been a significant surge in affordable housing projects across eight major cities. Homes priced below Rs 50 lakh accounted for about 71% of the total launches between January and June 2017, a significant 52% increase from the corresponding period in 2016. 　
Affordable housing is finally losing its ‘down market’ label and turning into a serious and respectable sector - a possible game changer for the real estate industry.
In 2015, Prime Minister Narendra Modi announced the ‘Housing for All by 2022’ scheme targeting two crore homes to be built across all urban locations over the next five years. This year’s Union Budget has been a goodie bag for the affordable sector with the following schemes and incentives to promote its growth:
• The government has granted the much-coveted infrastructure status to affordable housing, giving developers access to cheaper sources of funding, including external commercial borrowings (ECBs). 　
• Affordable housing promoters have been granted more time for project completion - the deadline has been increased to five years from the current three years. 　
• Developers will get a year’s time to pay tax on notional rental income on completed but unsold units. The tenure for long-term capital gains for affordable housing has been reduced from three to two years.　
• The qualifying criteria for affordable housing have been revised to 30 square meters and 60 square meters on the carpet, rather than the saleable area, for metros and non-metros respectively. This effectively increases the size of the affordable housing market across India.
• To augment the sops announced in the budget, a new Credit Linked Subsidy Scheme (CLSS) for the mid-income group was announced with a provision of Rs 1,000 crore.
Easy availability of finance for buyers
Government policies like the Real Estate Regulatory Authority (RERA) has infused fresh buyer confidence into the realty sector. First time homebuyers are finally making purchase decisions for homes that meet their budgets. The availability of cheap finance is also driving the demand for affordable housing.　
Several new entrants in the mortgage lending space are focusing on providing small home loans to customers in cities and small towns. Refinance of housing loans by National Housing Banks (NHBs) will give further boost to the sector. According to an India Ratings and Research report, affordable housing finance is set to be a Rs 6 trillion market by 2022. The research agency has also predicted a whopping demand for 25 million homes in the medium-income group (MIG) and lower-income group (LIG) categories over the next five years.　
Conclusion
Affordable housing is at the center stage of India’s real estate movement and this story is likely to unfold for multiple years. The housing shortage in India is pegged at 1.9 crore units and the government has recognized the need to fill the gap in urban housing. The drive to bring homes to the country’s 1.3 billion people is expected to bring a colossal $1.3 trillion wave of investment to the housing sector over the next seven years. The government’s financial and policy thrust, regulatory support, rising urbanization, and increasing affordability is converting demand for affordable homes into a commercially viable opportunity. The sun is finally rising on the affordable housing segment.
Courtesy-  The Hindu

Comments

Post a Comment

Popular posts from this blog

World Class Exhibition Center in Dwarka

-
Image
The national capital is set to get a state-of-the-art convention centre on the lines of the ones in Shanghai, Hong Kong and Singapore for hosting exhibitions, trade fairs and summits of international standards. To be constructed in Dwarka’s Sector 25, three kilometers from the IGI airport in south-west Delhi, the two-phased project was approved by the Union cabinet in November while the contracts were awarded last week. Architects working on the project, billed as one of the biggest in Asia, said it is conceived as a smart, zero energy, world-class facility designed for an events like G-20 summit. The  exhibition-cum-convention centre in Dwarka  and its allied infrastructure which includes, an arena, primary structure, Delhi Metro, road connectivity, hotels and office spaces, is being constructed at an estimated cost of ₹25,703 crore. It will be completed by 2025, a statement of Union ministry of commerce and industry informing about the Cabinet decision said.
Read more

Toyota: A Case of Overconfident

-
Image
Toyota a Japanese automobile company and world's largest automobile company in terms of sales. Now a days company is facing crisis this is due to recall of their vehicles(Toyota Prius) which has some sort of problem in brake and accelarater. Why this is a case of overconfident because when company got news about problem in few cars. They were fully confident that they can handle this problem effectively but fact is not like this. Now they are going to become victim of overconfident. According to company's philosophy "each problem provides opportunity for improvement". That's what company is facing problem. According to analysts the main reason for this recall is higher growing rate and other factors as well. so, being a company who believe in Just-in-time facilities how they are facing this types of problems. Now when Toyota started repairing millions of defected car they were not able to handle it. The very first and recent reason is Arrogance which the company h
Read more

DHL: Global Leader in Logistic Industry

-
Image
DHL is a global leader in world market having 43% market share. The name DHL derived from its founder name which is Adrian Dalsey, Larry Hillblom and Robert Lynn. This company has been established in 1969 and its Headquarter is in Germany. DHL operates in more than 220 countries with providing end to end solution of logistic. DHL business is in four segment first one is Air express, supply chain, freight forwarding and Blue dart express due to this capacity they are leader in world market. DHL main competitors are FedEx, USP and others. A far as DHL strategy is concern they are looking at their business from ground to top. Some of their strategy is following- 1. Provide solution of problem- Their business strategy says If you are doing business than you need to understand that why I am in this business. Once you understood the problem than provide solutions of that problem for doing great business for long run. 2. About your competitor- According to this point they says that first you
Read more