Infrastructure development is one of the main propellers of real estate growth. So this comes as no surprise that the governments increased focus on infra development in the Union budget 2019-2020 will have a positive impact on affordable housing as well. The ‘Housing for all by 2022′ initiative of the Modi government requires the construction of nearly 2 million affordable homes every year to meet its target. The best way to deal with this problem is to expand the infrastructure networks, thus making cheaper land parcels viable for private developer participation. Additionally, home buyers have a tendency to prefer settlements with established and strong social infrastructure.

Thus for affordable housing to be viable for both developers and home buyers, there is a need for improvements in infrastructure which would improve the connectivity within sub markets. On many fronts, this is a favorable and bold budget for the real estate industry. A massive boost for infrastructure will not only benefit the realty sector but also help other industries and create large scale employment in the economy. The government’s focus on infrastructure development of tier 2 and 3 cities will surely make these cities ready for next round of urbanization.

Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd. said, “This is encouraging for developers. Infrastructure status will ensure easier access to institutional credit and help in reducing developers’ cost of borrowing for affordable projects. It is a just a misconception among the customers that affordable housing segment does not consider the development of Infrastructure but we as a developer make consumer centric affordable homes which are not only budget friendly but the homes are designed with proper parameters of infrastructure development.”