23 March 2019

Cover Story

AFFORDABLE DREAM !

 

Every individual dreams of having his own home. With the government thrusting for its 'Housing for all by 2022,’ scheme, the market for affordable housing has shot to new heights. However, it should not remain a mere political carrot to lure the citizens of the country. Most estimates believe that real estate in India will touch the $180-200 billion mark by 2020 and is expected to grow by 30 per cent over the next decade. Even in such a fertile atmosphere for the market, there are a few challenges that need to be neutralised for the scheme to be foolproof, reports ROHAN AMBIKE.

 

 

 

Fast Facts

  •  Real estate in India will touch the $180-200 billion mark by 2020.
  •  Market to grow by 30 per cent over the next decade.
  •  62 per cent of the new housing finance funds self constructed standalone houses.
  •  14 million urban households live in slums.
  •   Slum dwellers comprise 17 per cent of the urban population.

 

 

 

 

The country will be on the verge of elections by March 2019 and the ‘Housing for all by 2022,’ the dream of Prime Minister Narendra Modi has come into the spotlight, due to the ruling party’s political expediency. It augurs well all around, to all Stake Holders across the value chain. The most impoverished segment living below the poverty line will get a decent house, government initiatives will roll out mega housing projects required urgently to cope up with India’s unprecedented urbanisation, this will generate plenty Greenfield projects for the entire builder fraternity including contractors, builder-developers and the labor market and affordable’s infra status will make it lucrative and kick start private participation in the segment.

 

 

 

The demand drivers and enablers are also in place. A robust economy, a galloping urban population, rising incomes in urban and rural economies and home loans available due to priority lending classification, will all ensure that the affordable pie realises its full potential as a long term growth story. Affordable housing will also grow into a major growth engine for the economy.

 

 

Affordable housing is set to drive growth for the residential real estate sector, as evidenced by the recent launches. A report indicated that affordable housing now accounts for 20 percent of the residential market, however, to fix a volume or value, we need to wait for at least another year. Many developers have announced new projects for affordable homes, some of them have even sold such homes, so the exact volume needs to be scientifically assessed. Hyderabad, Bengaluru, NCR, Chennai, Navi Mumbai, and Kolkata are emerging as affordable housing hotspots.  Bijay Agarwal, MD, Salarpuria Sattva