Affordable Homes in India Is A Necessity of Urban Life

Published on: May 20, 2015 @ 10:17

Affordable  homes  in  India  is  the  greatest  necessity  of  urban  life. Affordable  homes  means  provision  of  adequate  shelter  to  those  whose  needs  are  not  met  by  the  open  market. Affordable  homes  project  should  be  located  within  reasonable  distances  from  workplaces and should  be  connected  adequately  through  public  transport.

People  who  look  to  buy  houses  in  urban  areas  are  mainly  those  who  have  been  in  the  city for  a considerable amount  of  time  and  require  new  homes  due to  growing  family  size. Another  target  segment that  requires affordable  homes  are  city  migrants  who  can  not  afford to  own  houses  immediately  but  are capable  to  rent housing  premises.

Some  developers  are  developing  low  cost  and  affordable  homes  for  the  low-income  group of the  society.
Several  policies  adopted  by  the  Central  Government  have  assisted  in  the  delivery  of affordable  homes  for the  EWS  (Economically  Weaker  Section),  LIG  (Lower  Income  Group) and  lower  MIG  (Middle  Income  Group).

The  Government  has  allowed  FDI  of  upto  100  per  cent  in  housing  projects.  There  is  a provision  for reduction  in  the  area  from  50,000  sq. ft. to  20,000  sq. ft.  and  reduction  in minimum  capitalization  for  FDI investment  in  Indian  housing  sector  from  $10  million  to  $5 million.  This  will  boost  the  affordable  homes sector  of  India  which  were  struggling  to develop  large  projects. Making  them  smaller  and  more  manageable will  attract  FDI  (Foreign Direct  Investment)  and  expertise  in  setting  up  new  affordable  homes  project  in India.

The  real  beneficiary  of this  positive  sentiments  will  be  the  sub  markets  of  Thane  and Panvel near  Mumbai, Greater  Noida  West (Noida  Extension),  Outer  Gurgaon  near  NCR  etc.  The maximum  allotment  rate  for  the apartment  unit  approved  by  the  Haryana  government  under such  projects  will  be  Rs  4,000  per  sq  ft  of carpet  area  for projects  falling  in  the  area  of Gurgaon.

Most  of  the  newer  locations  being  explored  by  developers  of  affordable  homes  for  low-income  groups  are at  reasonable  distances  from  the  main  city  and  are  attractive  options  for people  employed  in  these suburban commercial  areas.

In  Mumbai  there  were  many  projects  targeting  low–income  group  segment  like  Karjat, Palghar  and  Boisar. Greater  Noida  West  near  Noida  also  catering  to  low-income  groups. Narol  and  Vatwa  in  Ahmedabad,  Ankel Road  in  Bangaluru,  which  is  around  9-10  km  away from  electronic  city.

Among  the  developers  Tata  Housing  in  Mumbai,  Janaadhar  in  Bangaluru,  Galaxy  Developer in  Ahmedabad, Supertech,  Amrapali,  Ajnara  Homes  in  Greater  Noida  West  and  Greater Noida have  also  focused  on affordable homes  and  have  already  launched  multiple  projects  across  Indian  cities.


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