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.