The existing infrastructure of the country is being pressurized with the adding population and the reason for the increasing population is the driving urbanisation and migration to metropolitan cities. Primarily driven by the already encumbered major metropolitan and urban regions of the country such as Delhi NCR, MMR, Chennai, Hyderabad, Kolkata and Bengaluru, there is a need to expand the proximity of these urban areas to meet the housing demand in the country which will eventually give a rise in the demand for affordable housing.
With different government policies for affordable housing, the segment might see a rise in the Tier II cities as well considering the increased migrated population in the metropolitan cities which has subsequently given rise to the housing demand. Recently, in an attempt to address the country’s lack of housing, the government of India recently lowered a tax on affordable housing and residential projects and reduced the GST (Goods and Services Tax) on affordable homes to 1 per cent from 8 per cent without the ITC (Input Tax Credit). This step will also boom the affordable housing segment to a great extent.
Mr Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder & Chairman – Signature Global India pvt ltd elaborates, “The Affordable Housing has been very advantageous to the people migrating from smaller cities to urban areas especially the millennial as the budget friendly homes do not put a hole in their pockets. Taking into consideration the number of population migrating to the metropolitan cities, it is surely going to be the hub for affordable houses.”