Affordable Housing will be the buzzword
Feb 07, 2015
Increasing population and escalating urbanisation have significantly reduced the area for developing houses in the country. Although modernisation has made inroads in to far reaching corners, there are still various sections of society that survive on a meagre income that is not enough to afford even the basics. Due to myriad socio-economic factors, there are many who are striving hard to make housing decisions that are in sync with their income. As a major chunk of the Indian population lives on average incomes, real estate firms have started focussing more on boosting the segment of ‘Affordable Housing’, in the country.
The term ‘Affordable Housing’ is related to the housing sections that can be afforded by those people of the society who earn median or less than median income. As India is a developing country, a large number of people still survive on medium or low disposable income which doesn’t allow them to purchase houses at the prevailing rate. Affordable housing meets the needs of such households efficiently. If the housing price does not cross 30% of the total income of a household, then the housing can be said to be largely affordable in India. But if the cost exceeds, then the housing becomes unaffordable for the low or median income households.
The increasing demand for affordable housing has urged real estate players to woo builders to develop such projects in the country in order to cater to the huge number of people who fall under the category of low or median income earners. By providing suitable options for people to live in, affordable housing protects them against skyrocketing housing prices. The government, in its bid to encourage affordable housing is also facilitating people with loans that are easy and hassle-free to obtain. This is encouraging real estate developers to offer housing plans that accommodate the acceptance of loans and payment in installments from credible lending sources.
It is estimated that, by the year 2025, half of the population will settle in urban cities for growth in income and for better lifestyles. This will probably result in dearth of affordable houses in the country. In order to address this looming problem, real estate giants are taking up new ‘Affordable Housing’ projects that will not only lead to an upsurge in their sales but also provide people with the basic needs of life. This is the reason why, affordable housing has become a buzzword in the realm of real estate and also among potential customers.
With various problems like unavailability of land, inadequate city planning and lack of finances for the middle-class, the industry is finding it hard to serve and satisfy the customers belonging to the median or low income group. In such a scenario, it becomes necessary for players to launch ground-breaking housing models by judiciously utilising the available resources. Without compromising on the quality of houses, the companies need to rev up the development of houses in order to build and retain loyalty of their patrons.
The concept of Affordable Housing is attracting hordes of people to opt for such properties to save themselves from the threat of exorbitant market prices. It is the immense effort of Housing Partners, Government, Investors, Private Sector and NGO Partners that lay the foundation for a successful low-cost housing project. The burgeoning problems related to affordable housing in the country can be best addressed when the collaborative efforts of the aforementioned entities are put into action.
The pillars of the real-estate industry often witness tumultuous times due to various economic problems. Affordable housing is one way to revive and reinvent the realty sphere of the country at such times. By giving them cost-effective and quality-centric houses to live in, the real estate segment is taking concrete steps to retain the loyalty of majority of the country’s citizens.
K. Altaf, Managing Editor, The Property Times