By Mr. RamjiSubramaniam,Managing Director at Sowparnika Projects and Infrastructure Pvt. Ltd.
New Delhi, July 16, 2018: The young joining the workforce today dream of owning a house at the earliest. But, the ever-increasing prices of land and the houses often deters them.
The final price the end consumer has to pay is sometimes too much for their comfort. According to a study, 80% of the first-time job seekers say that the first thing they want is a house. But, there is a mismatch between what’s on offer and what they can pay. Hence, there is a need for sensibly-priced housing for these first timers.
Factors giving a push to ‘sensibly-priced’ housing
First-time home buyers are looking for ‘sensibly-priced’ housing for a number of reasons. They are mostly after functional houses that meet their basic needs, while ensuring a comfortable living. Hence, they look for:
- Fulfilment of basic needs
As we all know, the Government’s initiative to provide ‘Housing for All by 2022’ has given a significant impetus to the common man’s aspirations for a shelter. A sensibly-priced house satisfies the fundamental needs by providing them a shelter, and owning such a house will not pinch the pockets. This will also cater to their basic necessities.
- Family’s well-being
Spending 50-60% of the income on home loans or rents every month might result in various issues. It would affect the physical and mental health of a person if it is much beyond their expectations. A number of studies prove that a stable home enables children to perform better at school and there would be no disruption in their education due to any reckless moves on the financial front.
- Freeing up funds
A sensibly-priced house would not be a strain on a family’s finances. There exists a great number of families who survive on a single income. A housing loan can stretch their finances. A sensibly-priced home would protect the family from such financial issues, enabling them to be free of worries about their emergency funds.
- Avoid stress and anxiety in children
There have been empirical evidences like that of ’Subsidized Housing and Children’s Nutritional Status-Data From a Multisite Surveillance Study’ revealing that children whose parents are provided better housing enjoy better nutrition. This results in better health within the family, thereby reducing expenditure on health-related issues.
- Stimulation of economic growth
As there will be a great demand for these homes, it will give an impetus to the sector and the economy. Housing is often the barometer by which the health of an economy can be measured. With an increase in the sale of houses, this will further result in the flow of cash into people’s hands. This multiplier effect, which is the increase in total income generation in the economy arising from injection of money.
In a city like Bangalore, which sees the influx of some 800,000 people per annum, it is important for real estate companies to cater to the needs of these people. Many of them are fresh IT professionals as Bangalore is the Silicon Valley of India. Bangalore also has the highest number of young entrepreneurs and thus, there is a diverse market of first time home buyers. Through changes in the organizational structure and the manufacturing process, companies can sail through these economic barriers and yet cater to the needs of these first time home buyers.
Corporate Comm India(CCI Newswire)
