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.
Ajay Verma, founder, and writer of The Housing World, a real estate and mortgage news website. He has over fifteen years of rich experience in the above-mentioned industries.