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Affordable Homes Offer $11.8-Bn Opportunity for Builders: C&W

New Delhi: Affordable home segment presents a business opportunity worth $11.8 billion for developers across seven major cities of the country, according to property consultant Cushman & Wakefield.

Cushman & Wakefield (C&W) has pegged the demand for affordable housing at 5,35,400 units across Delhi-NCR, Mumbai (MMR), Bengaluru, Chennai, Hyderabad, Kolkata and Pune.

"Affordable housing presents a $11.8 billion opportunity in India across major seven cities, backed by demand in these cities," the report said.

The consultant expects that strong demand pipeline in the top seven cities would drive private sector participation in development of affordable homes.

"Affordable housing demand across seven cities is around 5,35,400 units. Keeping in mind the high demand in this segment, it is time that developers change their perception about affordable housing development, since its success lies in the scale of operations, compared to the middle-income group (MIG) and high-income group (HIG) which have higher margins that drive profits," C&W said.

C&W executive managing director South Asia Sanjay Dutt said urban affordable housing has long been neglected in India due to various reasons such as high land prices, delays in getting approvals and low margins in the segment.

"Now with renewed focus from government, we expect this segment to gather momentum going forward," he added.

To fulfill the need for low-cost housing, the consultant said that the government needs to promote private sector involvement that would play a significant role in bridging the current deficit of low-cost housing in urban areas.

"Till now, private players have shied away from this segment, due to low margins. Incentivizing the sector by making land available, reducing raw material prices, providing additional Floor Space Index (FSI) for such developments etc. are bound to give a thrust to development of low cost housing units," the statement said.

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Realty Trends

Home prices near most-affordable levels in over 30 years: HDFC


Home prices may have been on an upward spiral for many years, but the cost of owning a house in India remains near the most affordable level in over three decades, shows data compiled by mortgage giant HDFC Ltd.

The average price of a home, purchased with a housing loan, rose to over Rs. 45 lakh in the 2012-13 fiscal year -- marking the fourth consecutive year of uptrend from about Rs. 25 lakh in the year 2008-09, HDFC has said in a presentation.

However, factors like an even greater surge in the personal income levels, tax incentives and lower interest rates, have resulted into houses becoming more affordable to purchase, it said.

 

 

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India Property Investment Gyan

Major schemes for affordable housing to be modified: Girija Vyas


NEW DELHI: Major schemes meant for providing affordable housing to urban poor will soon be modified to make them more people-friendly, the government said today and invited the private sector to contribute more actively in this area. 

Speaking to reporters here, Housing and Urban Poverty Alleviation (HUPA) ministerGirija Vyas today said her ministry is modifying all the major schemes including the Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana and the, Affordable Housing in Partnership scheme and added enormous budgetary support has been earmarked during the current plan period. 

Secretary HUPA Arun Kumar Misra told reporters that a fund of Rs 35,000 crore had been allocated to the ministry for the implementation of three major schemes, including RAY, which was being run in as a pilot project earlier under 12th five- year plan. 

He said the ministry would require approval from the cabinet for the implementation of these schemes and efforts would be made that through these funds 2 million affordable houses are encouraged. 

He said that in addition to the central government funds, banks and credit institutions would be providing funds for construction of affordable houses. 

Vyas said that with urbanisation, the number of urban homeless and area under slums had grown. 

Vyas said there was a need for private developers to develop economic models to foster affordable housing for economically weaker sections and lower income group households in urban areas as government efforts in this direction needed to be supplemented. 

Vyas also said a technical group, set up by her ministry, had shown that out of 18.78 million housing shortage in the country, 96 percent shortage is in EWS and LIG category and for this huge investments and private sector participation were required. 

Misra said the group set up by the ministry has suggested incentives for the affordable housing sector included concessions to development-related charges and service taxexemptions. 

It also sought direct tax rebates for affordable housing projects and inclusion of the sector in the 'infrastructure facility' he said and added the task force had felt that governments need to still provide direct capital grant support to affordable housing projects. 

Misra said that in the symposium held today where states, experts and private sector representatives were present, there was unanimity on many of the suggestions.

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Green Property- Eco Homes

Reclaim your city space: Projects in Delhi, Mumbai and Kolkata aim to transform lives

 
Three projects in three cities aim to transform the lives of people who live close by. The one in Mumbai hopes to transform a congested area into a green precinct; the one in Delhi converted an open drain into a walkway, while Kolkata hopes to bring the crowds back...