The Challenges and Opportunities of Affordable Housing in India

As other developing economies, India is also touching the boundaries of urbanisation and the pace of it is quite evident with the increase in percentage of urban population in recent past. As per Indian census, in 2011, 31% of Indian population contributed to urban population. According to estimates, around 600 million people are expected to make urban India their home by 2031, a whopping 59% growth over 2011. And to match this growth, the infrastructure of our country also needs to be developed. In India, home ownership is a dream for most of the “emerging middle class group”, “economically weaker sections” and “lower income groups”. They face various challenges when they think of buying any property.

  • The distance between the house and connecting areas makes a big difference on buying decisions of prospective buyers. The lack of land available in urban area makes the task of builders very difficult, this in turn poses a challenge to potential “affordable housing” customer of the connectivity with his work areas in the cities. This can be overcome if there is a rapid transit system of transportation available in the area.
  • The knowledge of various documents which needs to be provided to avail home loan facilities, still lack in various sections of society. This makes the task difficult for them to avail the loan facilities. Various financial institutions of our country should step forward and provide financial literacy to each section of society so that they don’t be deprived of their rights.
  • Many sections of society still do not know about such affordable housing schemes. The companies undertaking such projects should come forward and run various programs to educate these sections.
  • The rising cost of constructions and various taxes levied upon the customers makes the buyers take a backseat. Government should step in and make various committees to rule out the unnecessary taxes and turn this into single window clearances which will make this scheme accessible to all the needy ones.

Going forward, Government and builders jointly can bring harmony to the lives LIG’s and EWS of the society. The construction pace of such projects should also be looked upon without compromising the quality. Various taxes on construction material can be exempted which will in turn reduce the cost of ownership. New age technology can be incorporated for faster completion of the projects and granting possessions. Also, the local byelaws regarding parking etc should also be fine-tuned. The urban infrastructure should also be developed in relation to affordable housing projects so that the increasing demand of urbanisation can be met with the infrastructure of city.

In a country like India where a bus driver owns a latest technology mobile phone, but lacks the ownership of his house, affordable housing scheme might bring a great change. It will serve as a ray of hope for those who really want to fulfill the dream of having their house.

For More Visit Website: http://www.affordablehousingprojectsgurgaon.com/

Affordable Housing- A New Game Changer

In a country where having a home is considered to be the most essential thing, affordable housing schemes have taken the pledge to fulfil everyone’s dream. The Indian economy is regulated by many factors and now affordable housing has added its name to those lists of factors. The impact of these schemes is coming up very positive and real estate sector once flagged is now picking up steadily. The softening of interest rates which were stable from quite some time, has also lead to the growth of the affordable housing scheme.

This scheme is flourishing and will soon be the game changer for the real estate sector. With over 30% growth rate predictions, this sector will soon be the talk of the town. Affordable housing scheme is selling like hot-cakes and seems to fulfill a dream of owning house of every common man.

According to Knight Frank India, a real estate consultancy, there has already been a significant surge in affordable housing projects across eight major cities. Homes priced below Rs 50 lakh accounted for about 71% of the total launches between January and June 2017, a significant 52% increase from the corresponding period in 2016.

After demonetization, real sector dealt with a severe blow but affordable housing scheme has generated a new source of revenue. It had encouraged the developers and builders confidence in taking up various new projects and investing their efforts.

No doubt that Government is fully supporting this scheme, but also investors having full faith in this scheme. A major factor for its phenomenal growth is the keen interest taken by Modi Government in the housing programs run by them. This year’s budget also boosted the confidence of this sector. Policies like RERA (Real Estate Regulatory Authority) have infused full confidence among buyers and they are getting more decisive in terms of home buying.

The availability of cheap home loans in market is also encouraging the buyers to go ahead with their decisions for affordable housing. The home loan market in India consists of 76 lenders. These include state-run banks, private banks, and housing finance companies (HFCs). All these are trying to woo customers. Out of all these HFCs are ruling their way out. According to an India Ratings and Research report, affordable housing finance is set to be an Rs 6 trillion market by 2022. The research agency has also predicted a whopping demand for 25 million homes in the medium-income group (MIG) and lower-income group (LIG) categories over the next five years.

With all these factors driving the affordable housing schemes to be successful, surely it’s going to be a game-changer for the real estate industry in the near future. Government policies and support to provide housing for all by 2020 seems to be taking shape and coming along positively.

Source By : http://www.prfree.org/news-affordable-housing-a-new-game-changer-432820.html

Structural Flaws as per RERA and its Warranty by Builders

RERA UPDATES

While RERA or Real Estate (Regulation and Amendment) Act, 2016, will slowly change the way the real estate industry operates in India, the Act has also thrown open a few aspects that need extensive deliberation.

One such issue is the liability of developers to provide for workmanship for structural defects for a period of five years.

RERA lays down that “In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act.”

An expert in Real Estate said that builder’s responsibility towards a structural defect for up to 5 years is not harsh because “builders can appropriately cover themselves through insurance. The concern for builders would be workmanship for 5 years which may pose a considerable challenge”.

The question is how should a developer proceed because he sources raw material from other vendors and delegates the construction to contractors and sub-contractors?

The Haryana Real Estate (Regulation and Development) Rules, 2017 (draft rules) define structural defects as “actual physical damage/defects to the designated load-bearing elements of the building, apartment or unit like faults, breakage or cracks, appearing over time in elements such as load bearing columns, walls, slabs, beams etc which can affect the strength and stability of the apartment or the building and shall include

  • defects due to design attributes of reinforced cement concrete (RCC) or structural mild steel (MS) elements of an engineered (structurally designed) building structure
  • defects due to faulty or bad workmanship of RCC or MS work
  • defects due to materials used in such RCC or MS work (iv) major cracks in masonry work that are induced as a result of failures of RCC or MS work
  • Any defect which is established to have occurred on account of negligence, use of inferior materials or non-adherence to the regulatory codes of practice by the promoter.”

Affordable housing set for growth in 2017

The maximum demand for housing in India has always been and continues to be in the affordable segment where property prices range from Rs 15 lakh to Rs 50-60 lakh, while a huge number of ready-to-move projects in cities like Gurgaon , Mumbai are priced upwards of Rs 1 crore.

Affordable housing schemes for the middle and lower income groups are finally on a serious growth curve in 2017, with huge demand in both segments now also being met with increasing supply. It may seem strange that massive demand and massive unsold residential inventory can coexist, but this is in fact the result of pricing mismatch. The maximum demand for housing in India has always been and continues to be in the affordable segment where property prices range from Rs 15 lakhs to Rs 50-60 lakhs, while a huge number of ready-to-move projects in cities like Mumbai are priced upwards of Rs 1 crore.

Affordable Housing Projects Gurgaon

This is evidently a stalemate situation for the existing supply – having invested heavily in location and premium features and amenities, the developers of these projects can obviously not bring the prices of their inventory down into the affordable brackets. These are premium offerings and will retain premium prices, with only marginal downward price revisions possible in some projects if the developer in question is able to absorb a loss. Others will wait for market conditions to improve, which they are already showing signs of doing.

The good news for the affordable housing segment lies in the Indian Government’s determined policy directive to provide Housing for All by 2022. While this objective seemed a little fabulous to begin with, we are actually seeing some serious action on the ground as a result of this policy directive.

The Government is now collaborating with private builders and developers under a public-private partnership model (PPP) to make Housing for All by 2022 a reality. Many developers have responded positively, which is not surprising. It is no secret that affordable housing promises a lot of growth for all concerned – the problem lay in the fact that the profit margins in this segment are quite small, and the Government had not provided developers with a good incentive rationale to take the plunge.
affordable housing scheme Sohna
Today, they have this incentive. The Government has provided 39% higher allocations for affordable housing development vis-a-vis FY 2016-17 under the Pradhan Mantri Awas Yojana (PMAY). It has also extended the Credit Linked Subsidy scheme to loans of value up to Rs 1.2 million. And, while the Government has also made a number of other moves to meet the demand with supply and address the affordability issues for the middle and lower income groups, the most important stimulus by far has been the fact that affordable housing has now been granted infrastructure status. This translates into easy financial credit for builders and makes it a lucrative segment for them to invest in.

The Investment Information & Credit Rating Agency (ICRA), considered to be the most reliable domestic rating agency, confirmed in a recent report that the affordable housing segment in India is set to grow at a faster pace than the rest of the real estate industry – at more than 30% over the medium term – and will be the key growth driver for the Indian mortgage finance market.

Other Factors Driving Affordable Housing

Massive urban inward migration: While luxury housing continues to hold its own in terms of its niche demand, the fact is that developers today are more inclined towards creating affordable housing projects. Not only is such housing selling like hot cakes, it is also the most incentivized segment for both developers and end-users. A large percentage of the population is migrating to the tier-1 and tier-2 cities, attracted by the new job opportunities ushered in by the country’s growing economy. As a result, the demand for affordable housing has increased exponentially. Simultaneously, Government policies like RERA have infused fresh buyer confidence into the real estate sector, bringing fence-sitting buyers onto the market with firm purchase decisions for homes that meet their budgets.

An increasingly attractive investment proposition : On the back of the new regulations which the Government has deployed to make Indian real estate a more credible and logic-driven market, property investors focusing heavily on affordable housing for the middle and lower income groups, as this is by far the most attractive investment option now. Affordable housing is now a highly profitable long-term proposition for real estate investors, and developers also stand to seriously profit from creating it.

Affordable housing supply in the right cities : The trend of nuclear families driven by young professionals is increasing all over the country, especially the metropolitan cities where InfoTech and other major corporate sectors hold sway. In cities like Bangalore, Pune, Hyderabad, Chennai, Thiruvananthapuram, Navi Mumbai, Gurgaon, Noida and New Delhi, young professionals are eager to own homes and settle down with their new families, so affordable housing is a major hit in such cities.

Indeed, it has never been a better time for affordable housing in India. The segment has lost its ‘down market’ label and become a serious and respectable business sector for real estate developers. It is a given that the demand-supply gap is still huge, but the fact is that it is narrowing visibly for the very first time in several decades. Over the next five years until 2022, we will see affordable housing action on the ground unfolding at an increasingly rapid pace – and everyone, not least of all the country’s economy and most importantly the long-neglected end-user of affordable housing, stands to benefit.

Haryana Govt. affordable housing scheme Gurgaon

Source : Ashwinder Raj Singh, ANAROCK Property Consultants | Mumbai | July 11, 2017 12:37 IST

GST and Its effect on affordable housing

Change is the only constant thing in every sector.  With various reforms coming up in the real estate  sector, GST is the recent talk of the town. There are various goods and services which will have different rates prescribed by GST, which may impact their cost. A homebuyer going forward will have to pay 12% GST to purchase an under construction house.

Earlier Real estate sector was heavily taxed but now 12% tax rate is definitely a welcome move in this sector. The previous multiple indirect taxes on the sector was higher and tax impact under GST will be neutral. GST will remove the multiple level tax burdens from buyers and investors, therefore removing the double taxation impact. However, 12% tax rate under GST seems to be favourable for the real estate industry.

Under GST, sale of under-construction real estate properties would be classified as a supply of services and would be liable for the payment of GST. However, the sale of completed real estate properties and land are exempted. Also, the service tax and VAT charges currently payable on the sale of under-construction properties would be subsumed by GST.

Hopefully, GST will boost foreign investment in real estate sector because of its uniformity and simplicity. It will imbibe confidence among NRIs to invest in Indian real estate market.

Further, the exemption of service tax for affordable housing has not been continued in GST. The only mention of affordable housing as per the list of ‘Service Tax Exemptions to be continued in GST ’is at entry no. 66 which reads as below –

Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the Beneficiary-led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY);

A comparison between the earlier tax regime and the new tax regime under GST for normal real estate and affordable housing is as below –

 

Earlier Tax Regime Normal Real Estate Affordable Hosuing
Particulars Tax Rate Input Credit Tax Rate Input Credit
Service Tax 4.5 % Not Available Exempt Not Applicable
VAT 0.65% Not Available 0.65% Not Available
Total Tax 5.15% 0.65%
GST Regime GST 12% Available 12% Available
Total Tax 12% 12%

Impact of GST will be significant as there is an increase of almost 12% in tax. Since RBI does not allow the funding on indirect tax part of the flats, this additional amount of 12% will be bore by the buyer directly to the builder.

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Pradhan Mantri Awas Yojana Will Come From This New Guideline To Benefit Every Class

If your dream of buying your house till now has not been completed, then it will definitely be completed.

How can you be thinking?

Through the Prime Minister’s Housing Scheme.

Indeed, under the Prime Minister’s Housing Scheme, some houses are being included in this scheme and are being given cheap prices, but some other guidelines have been issued besides those, besides the lower middle class and others besides themselves. Have a chance to dream of buying a home.

You must know that Dream Homes of Huda Affordable Housing also come under this scheme, which now costs only 14.99 lakh rupees. Along with this, you will also have the opportunity to avail of many other facilities, such as Express Bus Service, My City App, High Tech Safety, Parking, 50 Community Park, Air Conditioned Gym, Swimming Pool, Badminton Court, Shopping Mall and many more. Some |

With the help of the Prime Minister Housing Scheme, you can get all these facilities in only 14.99 lakhs. There are more guidelines under this scheme, which will help you to get your home.

Let’s know which guides are:

Under this scheme, ECONOMICAL VICKER SECTION i.e. EWS and Lower Income Group i.e.

That LIG and two middle income groups have been included.

Under the Prime Minister’s Housing Scheme, annual income of upto Rs. 12 lakhs is 90 square meters

Government has given a subsidy for taking home loans for 110 million square meter households, which is 18 lakh rupees.

If your annual income is Rs. 12 lakhs then you will be given a subsidy of 4% on loan upto Rs. 9 lakhs. On the other hand, if you earn up to Rs 18 lakh annually, you will get a subsidy of 3 percent on loans up to 12 lakhs. You can get this subsidy on home loans up to 20 years.

This announcement was made by the Prime Minister on December 30 last year. Apart from this, in the year 2015, under the Prime Minister’s Housing Scheme Rs. 3 lakh and Rs. 6 lakh per annum were also announced for taking a loan of 15 years for a loan of 6.5 percent. But now its duration has been increased to 20 years as the rest of the group.

Are you still thinking? Do not think, soon realize the dream of ‘your house’.

The safety and security of your family has been given the primary place inSohna. In the Sohna being developed on the developing site like NH 24 in Ghaziabad, CCTV is available at every 800 meters. Surveillance by cameras, supervised by the Central Command Center, and strict monitoring, adequate parking and all world-class facilities will be available.

Here you can choose anything from Dream Homes, Affordable Floors, Affordable Executive Floors, Prime Floors and Plots. And now the government is also reducing the prices of homes for you, as well as now there is a subsidy in home loan.

Now do not waste time thinking, soon go to Global Hill View to take home. If you want detailed information about the Prime Minister’s Housing Scheme, contact our advisor through the comments box. They will bring you all the information.

Book Your Home where Beautiful Landscape Make it Rich

Construction of the project is what makes the project beautiful and attractive. Apart from the most beautiful construction of Home, the beautiful landscape around it is ultra necessary to give you the right joy of living in near your residential place. If you are going to buy your own home, you need to look into the aspect that this would be the right choice or not.

If you are lover of natural beauty at heart, you would consider to buying your own home that provides you with the beautiful scenery nearby. It can make you feel love of nature at the balcony of your home at global hill view Gurgaon. You can assume it, like you are sitting in the comfortable chair on your balcony with a cup of your favorite tea or coffee in your hand and sun rays are making your head bright. Yes, this is the most wonderful sight what you can imagine in your mind. It is not mere an Imagination, but it can be made real if you buy home with Breeze Global Hill View Sohna.

The project is in the great location, and connectivity makes it much more exciting place for home buyers and property investors. If you are buying your own home with such projects you can bring your dreams come to live. This is really one of your most important decisions which you can make for your family requirements. You would be able to bring a pleasant sense to all your family members.

Buy Homes with Trisara Group in Gurgaon at Best Prices

Buying home in Gurgoan can be a right decision if you are looking for buying your own home. Actually the homes in Gurgaon are being developed in the areas where the rates are very lower in comparison of other luxurious projects. The homes in such condition where the projects have not been completely built are generally reasonable, and a common person can take his or her home within their budget.

The projects that come under the affordable schemes of Haryana Governments are much more accessible for a common people. If you also are looking for such kind of home under your budget, you will be able to buy your home with Trisara group in Gurgaon. The projects are on their progress covering all the architectural techniques. The location of the project is unbeatable because of world class amenities around. The area has great facilities of good connectivity.

If you are in need of a home in such an environment where you can live with peace and harmonious condition with your family, then the projects is second to nothing. The location of our homes 3 Gurgaon is really what has noticed and will be noticing a great growth in property costs. If you buy your home and in any way your mind changes and you want to sell this property, then you will be able to reap the great hike in prices. The area will be developed very soon and the hike in prices will be at high speed. That is why investing money in the properties would be a wise step.

Alternative route between Gurgaon and Manesar in the works

At present, SPR connects with NH-8 around one km ahead of the Kherki Daula toll plaza. Under the new plan, the alternative route will start from the road dividing sectors 75 and 75A.

GURGAON: Huda is working on an alternative route between Gurgaon and Manesar to decongest the Delhi-Gurgaon expressway. The new route will connect Southern Peripheral Road (SPR) with NH-8, bypassing the Kherki Daula toll plaza, largely benefitting commuters coming from the Faridabad side.

At present, SPR connects with NH-8 around one km ahead of the Kherki Daula toll plaza. Under the new plan, the alternative route will start from the road dividing sectors 75 and 75A, and it will connect NH-8 near Sector 83 through the road diving sectors 76 – 77. Some developers, who have their projects in these areas, have come forward to help the urban development authority construct the road.

File photo

With the completion of this road, people coming from Faridabad side through SPR can directly go to Manesar without having to cross the Kherki Daula plaza and pay the toll. It will also give a boost to several real estate projects being developed along SPR, which is on the verge of completion.

“We have taken possession of the land required to construct the roads of sectors 75, 76 and 77 after completing the acquisition process, which was stuck due to litigation. We have levelled the land so that till the time the metal road is constructed, people can use this route, if they wish,” Huda administrator Yashpal Yadav told TOI on Tuesday. He, however, refused to give any timeline for completion of the road, only assuring to complete the project on priority basis.

Yadav said Huda has engaged a consulting firm that will prepare the estimate within the next two weeks for the construction of these sector roads. “Once the estimate is ready, we will start the process for construction of the road,” he said, adding, “some builders have shown interest in constructing this road against adjustment of their pending external development charges (EDC)”.

Welcoming the development, Manav Gopal, head of sales & marketing of MAPSKO Group, said, “The new link road bypassing the Kherki Daula toll plaza will connect new Gurgaon with SPR, thus reducing headache and commutating time for residents and enhance the connectivity of that area. The long queues at the toll plaza were the main hindrance for people not opting for residential properties in new Gurgaon. So, in other words, it will boost the real estate sector in new Gurgaon tremendously.”

Harinder Dhillon, VP (sales), DLF, said, “This is good news as the proposed road will decongest the expressway and allow smoother commute for the cars plying on this stretch of the expressway, which is like a new year gift for the residents of this area. The development will improve connectivity to new Gurgaon and make these upcoming sectors an even more attractive option for potential buyers.”

Make Your Dream Residence with Affordable Housing Scheme Gurgaon

Most of affordable housing projects in Gurgaon come under the Haryana Government affordable housing schemes. These projects offer quality home with good features at cheap prices. If you are unable to buy luxurious home for 30 to 80 lacks rupees in Delhi or Gurgaon, you can move to the affordable housing projects where you will be able to have your own home under your budget.

The projects offer 1BHK and 2 BHK homes at competitive prices. If you choose such kinds of projects for making your home, you will be able to bring a nice gift to your family even when you don’t have a large amount of money. This will be great to make possible buying a home under flexible payment plan. It is great to make it your own home instead of giving a big amount of your monthly salary as the rent of your rental home. Remember the amount of your monthly installment will be a simply bigger than the money you pay a monthly rent.

After buying your own home with affordable housing scheme Gurgaon, you will be able to save money which you give to your landlord. No matter which type your requirement is, affordable housing projects offer you the most suitable home. Considering the different requirement of Home buyers, the affordable housing projects are designed and developed with different kinds of homes so that every home buyer can buy their home as per their family needs or future plans. That is why; you can also come forward with your estimation and home requirement.

http://www.affordablehousingprojectsgurgaon.com/