Updated: Nov 1, 2018
Affordable housing is one that once can be afforded as a measure of expenditure or housing to income of the household. It offers all basic amenities and facilities with quality, lasting construction but at a price point that is affordable by aspiring customers and thus cuts across other income segments of the society, especially the LIG and MIG segments and make good economic score. Houses are to be designed and made such that it’s main focus is on compact, efficient, boutique home for middle and for high level income categories, taking care of GST and Real Estate (Regulation and Development) Act. All the regulating and taxation policies should be kept in mind. Affordable housing is when the cost of housing is not be more than 30% of a household annual income including taxes and insurance of owners and utility cost. According to RBI the cost of a house in this category now should be INR 6.5 million and INR 5 million in metros and non-metros respectively. Affordable housing can be sized at 300 sq ft-800 sq ft. New affordable residential houses were 74,000 across India’s top eight cities with Mumbai 31% and Pune 15%. In 2017 the affordable housing segment saw a rise in launches. The cash flow is higher in affordable housing compared to real estate as most units are sold out long before they are constructed and the Internal Rate Of Return (IRR) is 20%.
There is a stability in the residential market.Pradhan Mantri Awas Yojana(PMAY) proves to be a benefit fir affordable design.P.M. Narendra Modi’s plan of building affordable homes with affordable design for all by 2022 is set to boost the economy by $1.3 trillion and create 60 million new houses.Mumbai is leading in the trend and helping in growth by 6% and has led the sector, with other over 29 projects targeting Karjat,Vasind,Palghar and Boisen along with Chakasand, Shishkrapur in Pune has multiple ongoing projects catering low income groups.Mumbai and NCR Delhi has mordern affordable housing projects located 55-135 km away from the city centre. On the other hand Hyderabad projects are located at a distance of 15-20 km from the city centre. Bangalore, Pune, Kolkata, Chennai also have projects after a distance of 20-45 km from the city centre.
OBS Golf Heights 69 is the latest upcoming projects by Ocean Seven Builders in Gurgaon sprawling in an area of more than 5 acres with close proximity to golf course road and sohna road. The project is promised to be built with modern infrastructure besides good construction quality and will be handed over on time. Promising to provide you 2bhk and 3bhk apartments with cctv facilities, elevator, fire fighters, a play area for children, 24x7 power backup and many more. Furthermore, the location also benefits from nearby shopping complex and upcoming metro stations. Whereas in Kolkata the trend of nuclear family raises the demand of affordable houses in areas- Narendrapur, Rajarhat, Kalikapur, Keshtopur.
The recent new launches trend shows that demand of affordable housing ranges from 5 lakhs to 40 lakhs and is continuing to grow. Some of the projects in Kolkata are The 102, Swayam City In Joka; Vinayak Golden Acres in Hoogly, Manorma Heights- South kolkata etc. In Mumbai the projects are Anantnath and lily in Diva, Runwal My City 1 Phase 1 In Dombivali, India bulls park 3 in Panvel etc. Real estate developer, The Wadwha group has announced a large affordable housing township in the NAINA (Navi Mumbai Airport Influence Notified Area) region at Panvel with an initial investment of 5,000CR and will be spread in 450 acres.
These projects are helping the people to live in peace and not go overboard with their expenses and at the same time managing to bear an affordable house.