Affordable Housing can be a better option for Homebuyers

New Delhi, June 29, 2018: In a bid to increase the demand for an affordable house the Centre Government has taken certain initiative which will attract more developers and homebuyers towards the sector. Hence the demand for the affordable house will remain in 2018.

Recently the Ministry of Housing and Urban Affairs has increased the carpet area to 160 square metres for MIG -I and 200 square metres for MIG-II, this will have a positive impact on the sector.

“As a part of the real estate industry, we welcome the centre decision relating to the revision of the carpet area. It is another big step to boost the construction sector that contributes to increased activity on the supply side. These increments will now enable more customers to qualify for a subsidy and avail the benefits provided under the ambitious flagship mission of Pradhan Mantri Awas Yojana,” said Mr Ssumit Berry, Managing Director, BDI Group

The central bank has increased the housing loan limits for priority sector loans to ₹35 lakh from ₹28 lakh in metropolitan centres, and to ₹25 lakh from ₹20 lakh in other centres. However, the overall cost of the residential unit should not exceed ₹45 lakh in metros and ₹30 lakh in other centres. This will also align the scheme with the housing-for-all scheme of the centre.

“The Reserve Bank of India (RBI) has increased the loan limits for banks and housing finance companies (HFC) so that these financial institutions can meet their priority sector lending (PSL) requirements. The enhancement in housing loan limits would lead to first-time home buyers falls into the realm of affordability. It would also lead to many more developers looking at catering to this segment.  This altogether will increase formalization of the overall economy,” added Berry

As per the ICRA report, the affordable housing segment is going to increase by 30% as compared to the other segment of the real estate.

The government in Budget 2018-19 has continued with its thrust for Affordable Housing and “Housing for All” scheme. It has further given impetus to affordable housing by creating a dedicated fund under the National Housing Bank (NHB)

To further give push the sector, the state schemes along with Centre’s PMAY (Pradhan Mantri Awas Yojna) are luring developers to launch more projects in the affordable housing sector. The increased thrust is given by Government of India (GoI) towards affordable housing has given wings to the home buyers’ dream of owning a house.

RERA which was introduced last year is changing the landscapes of the real estate and helping in the growth of the affordable housing.

Prime Minister Narendra Modi’s plan of building homes for all by 2022 is set to boost the economy by $1.3 trillion, create 60 million new houses and over 2 million jobs annually.

In nutshell, it can be said that affordable housing sector, which is also called the ‘growth engine of Indian Realty Sector’, is surely going to witness the boom in 2018 and incoming time ahead.

Corporate Comm India(CCI Newswire)