Accommodation Times News Services
By Kishor Pate, CMD – Amit Enterprises Housing Ltd.
Affordable housing, though a widely-used term in India, actually means different things to different sets of demographics. The definition of ‘affordable’ is heavily influenced by the socio-economic variables that drive a certain city or location. For the Indian market, affordable housingwoul
There is no doubt that economically weaker secti
The BJP government has undertaken several initiatives to boost re-development of older buildings while supporting high-grade infrastructure for the peri-urban locations. The objective is that the working population should not have to move out of their city to go to work every day. Commute time and accessibility has been a key factor behind the development of low cost housing in the land parcels located on the periphery of cities.
But affordable housing also has a larger ‘local’ meaning – namely, housing which is affordable to the largest segment of potential home buyers in a city. The target buyer base for affordable housing in a city can be that section of the local population which, though not economically challe
In other words, if there is a deficiency of new properties in city locations for buyers whose budgets do not exceed Rs. 30-40 lakh, a city is suffering from an affordable housing deficit even if it has a massive supply of homes priced within Rs. 20 lakh on the extreme outskirts. Buyers who can afford to spend more than this will not consider moving their families to the peripheries, yet the available options in better locations exceed their budgets.
If a large part of a city’s working and earning middle class cannot afford to buy good homes, there is a dearth of affordable housing.
There is sufficient business rationale for affordable housing project
While a lot of work and policy-driven growth is still needed in the affordable housing segment
Another direct implication of the growing demand of affordable housing is the rising interest from real estate investors. More and more investors are now putting in their money into budget homes, attracted by the healthy demand.
These factors clearly indicate that affordable housing as a business vertical has stood the test of time, even as costlier luxury homes segment are facing a hard time in the current scenario. Builders who have tasted success by proving much-needed affordable housing