In a country like India where homes vary from single rooms to multi-storeyed mansions, affordable housing projects can make a great difference. This segment of the real estate sector is predicted to grow and drive the Indian economy in the future. Some experts believe the growth rate to be well over 30%.
Eight cities in the country have come forward to experiment with affordable housing and have shown results. Housing projects priced below INR 50 lakhs formed the majority of the total launches alluding to the fact that the country is making the most from it. Not only is affordable housing considered a respectable segment today, it may well be the missing link for the real estate industry.
In 2007, when the first of the affordable housing projects started, the real estate sector was under severe pressure. Apart from the heavy costs that came with construction, there was also unavailability of land and little incentives. The tax environment was discouraging as well. But, it started changing with the announcement of the “Housing for All by 2022” by the new government. The scheme aimed at building 2 crore homes in all urban locations within five years. The program acted as a catalyst for the real estate sector with incentives and schemes to promote growth.
The government began by granting an infrastructure status to the upcoming affordable housing projects, allowing developers to have access to funding including the external commercial borrowings (ECBs). In addition, the project promoters were granted a total of five years to complete their projects. The government also revised the qualifying criteria for a housing to be considered affordable for both metro cities and non-metro cities. This has given a tremendous increase in the affordable housing market. Apart from all the advancements, the government has also allowed developers to pay their taxes such as the notional rental income tax in a year’s time while the Credit Linked Subsidy Scheme (CLSS) was also announced.
This push for policy and the financial assistance by the incumbent government has brought more real estate developers to take up the new housing segments. Although the demand for affordable housing already existed, the regulations, infrastructural support by the government and urbanization has augmented its popularity.
If you are looking for affordable housing projects in Gurugram or NCR, you are likely to find what you want. The government has passed RERA that has given buyers fresh confidence in the sector. The first-time buyers can also find homes within their budgets and easily-available finance has made the demands even higher. More financial institutions have come up that offer small home loans to people in small towns and cities. With a huge population falling within the low-income and middle-income groups, the demand for affordable housing can reach as high as 25 million homes.
There are however, some challenges such as finding land in the urban centres of the country. To create 2 crore homes within the next few years will become difficult without land availability. Large government bodies which currently hold non-essential lands have to be unlocked for this purpose but without it, the dream housing for all will be distant reality.
The housing shortage seen within India has already crossed one crore units. Even though the government has recognized this gap in housing, it will take years before any real changes can be seen. However, with the government also consolidating the policies, infrastructure, and financial availability, it is likely that affordable housing can close the ever-widening gap. Urbanization and increasing demands for affordability has placed affordable housing projects as a viable commercial opportunity that can alter the course of the real estate sector.
Signature Global is a reputed name in the real estate sector in India dealing in affordable housing projects. Signature Global’s residential flats in Gurgaon include their massive projects of Solera (Sector 107), Synera (Sector 81, NH8) Andour Heights (Sector 71), Orchard Avenue (Sector 93), Grand Iva (Sector 103), Roselia (Sector 95A), and Serenas (Sector 36). At present, Signature Global’s Signum project offers retail shops in Gurugram in sector 36, 95A, 93, 103, 71, 81, and 107. For bookings, check http://www.signatureglobal.in/retail