By Murari Chaturvedi
Property market throughout the country is down having no buyers in sight. This is the condition when there is 70% housing shortage in the country. Housing shortage exists in the seven states namely in Uttar Pradesh, Maharashtra, West Bengal, Bihar, Rajasthan, Andhra Pradesh and Tamil Nadu. The housing shortage is in the low income group and the economically weaker section category. The urban housing shortage is due to the builders and investors and their greed for more profits in the newly launched projects. This conclusion is of the ministry of housing and poverty alleviation.
In Mumbai property sale registration has declined by 5% in the last three months. A modest flat of around 500 sq ft (super built-up area) in Mumbai is costing up to Rs. one crore and more. And the average buyer can purchase a flat of up to Rs.40-50 lakhs only with the housing loan. This is the general
scenario in all most all other metro cities in India and thus increasing slums in the urban areas. To solve this acute housing shortage problem dedicated efforts are needed by all concerned. The housing boards in the country should be geared up to construct houses of around 300 sq ft on mass scale in urban areas and metro cities. Also a new breed of builders and developers are needed to construct small housing units in urban areas and big cities for affordable housing segment. The housing loans be given to such housing be given on subsidized interest rates. The state government and municipal corporations should also revamp their building plan approval procedures and make it time bound. The stamp duty, be reduced to 1% on small 300 sq ft houses and also other taxes on building construction materials used in constructing houses for lower income groups. The National Housing Bank can play a major role by giving loans to construct small houses on subsidized rates.
Above all a time bound and practical plan by all concerned be made and implementing to solve this national problem. Small houses constructed on mass scale too can give projects to the builders and housing Boards and as such they should be promoted without loosing time.