Affordable housing as need for the overall growth

In a recent talk on affordable housing, Minister of Housing and Urban Affairs Narendra Singh Tomar mentioned about going ahead on rural and urban India’s infrastructure needs. The sources say that the urban population is expected to increase from 377 million in 2011 to about 600 million by 2030. The minister has made it clear that they look forward not just to the quantitative but also qualitative development. Affordable housing being  one of the main contributors to the recent  and upcoming economic growth is being given the much required attention.  Talking about the upcoming affordable housing units, he said that they are targeting construction of over 50 lakh dwelling units in rural areas and a similar target for the next financial. This is in addition to what has been built during 2014-16. Talking about the urban areas In urban areas, he said that they  are  aiming at sanctioning of required number of houses by 2019 so that construction could be completed by 2022 as targeted.

The affordable housing projects have been benefitting  the larger strata of the population thus giving high growth hopes to the real estate sector. According to the government’s Credit-Linked Subsidy Scheme (CLSS), households with income of less than Rs 18 lakh are suitable to go for affordable LIG and MIG housing units under its interest subsidy scheme. As most of the people belonging to the low-income background are still struggling to purchase their own house, there is a huge demand for the affordable housing units. Being the low-cost units, such properties are a new hope for people aspiring to buy the first house. The frequently held meetings by the government authorities try to eliminate the challenges that are being faced by the developers and builders while executing such projects.  Also, there is a clear-cut statement by the experts that this segment is going to be the most established wing in the coming years. The policy makers and the financial institutions have made ample amount of amendments in order to assist the same PMAY scheme.

“The framework and government’s push is  clearly denoting that there is  going to be sufficient growth in the real estate sector which was much needed, we cannot deny the fact that most of the financial institutions and micro-lenders are every now and then coming forward to contribute to the affordable housing projects. There has been an appropriate start at this sector suggest the past few years,  the recently enacted laws and regulations assuring transparency are going to ease larger proportion of people. The perspective about the real estate industry is transforming.  The good news is that the sector has already started experiencing the positive impact of these laws and benefiting policies ” says Pradeep Aggarwal, Co- founder & Chairman, Signature Global.

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