Provision of affordable housing is now a priority area for the Government of India; however, providing housing for all on ownership basis is a challenge, despite the best efforts of the policies like PMAY. Post-Covid-19, affordable housing is going to be a great success. Also now with having extended Credit Linked Subsidy Scheme by the government, affordable housing becomes attractive. The need of affordable housing is immense, and the lasting impact it can have on homeowners and their families is undeniable. The affordable housing projects have high rate of absorption as there is a lot of demand for the low-cost units.
Though the demand for affordable housing had increased in recent times, but the lockdown came as a major setback for the sector which was already reeling under crisis. But it is for sure that the momentum of affordable housing picked up the pace after RBI’s announcement, as it will infuse liquidity in the market. People with salaried incomes are facing difficulties in paying rents during this time, the affordable housing demand get pushed because of this factor. Now more and more people post lockdown with regular income jobs will think about purchasing their own homes.
Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, says, Definition of affordable can vary from person to person but now the government has fixed the definition. Going by the parameters set by the government, an affordable housing is surely beneficial for the people who were not able to buy homes at location/prices that are prevalent in the real estate market. Looking at the high costs all around, affordable housing developers are ensuring that they cater to the growing demand. It is advantageous as you can buy a home at your present financial condition which can later be sold if financial condition improves. So instead of waiting for the situation to improve, one should invest in affordable housing which will not only ensure roof over their heads but also give them capital appreciation in the long run. For affordable housing to be successful, various state governments should take a leaf out of Haryana government’s directives which has fixed the cost of affordable housing at Rs 4,000 per sq ft among various other directions.