First half of 2016 has been the witness of initiation of affordable housing double in volume. There’s lot been happening to curtail the syndicate operation in the metros of India, majorly related to the supply of building materials of real estate. The average cement price during this February was Rs. 292/bag, after March it’s going to get a hike of at least 5-6% per bag. Whereas constant demand of affordable housing and Govt.’s avidity has lead to a near doubling of launches in this section in the first half of 2016. According to the Cushman & Wakefield report in comparison to the previous years the first half of this year has been revolutionary for the development of affordable housing, home for every economic class. The number of newly developed projects has increased by 100% on year to 17000 units across the prior property markets of Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai, Ahmadabad and Hyderabad during this period. The booming of affordable flats in Kolkata has greater potential than that of the other cities, for the low cost of living, expected by the real estate gurus.
Urbanization also plays an important role in this progression of demand. Accordingly the real estate market of India about to reform according to the current market situation and expectancy of the homebuyers. It’s an alluring fact for the suburban inhabitants and also middle income group people to get a chance to reside in a broad-based city. ‘Tata value homes’- an initiative from Tata Company has already presented more than 2500 units affordable housing in Mumbai, Talegaon, NCR, Bangalore and Chennai in the last 6 months. What could be more lucrative for the homebuyers when they are getting affordable homes in a city approved by highly acclaimed companies like Tata? Going by the reports- the augmentation of launching affordable flats in India are being endorsed by a steady and constant demand in the major cities like – Bangalore, Delhi NCR and Mumbai. This project throws light on a vital segment which has been overlooked for a long time and it’s now growing steadily due to an undying demand. This movement will surely give big blow not only on real estate sell but also on Indian economy. Demand for affordable homes has flourished after the Govt. has declared first time homebuyers supplementary inference on calculating tax liability.
As we all know this move is a part of HUPA’s ‘Housing for All by 2022’ vision which allows first-time homebuyers bonus deduction of Rs. 50000 paid for loan amount less than Rs. 35 lacs and for an asset value less than 50 lacs. As an outcome developers are receptive towards potential market demand. Therefore focusing on the quality and delivery time of the construction comes as an inevitable strategy from the builders’ corner. Tata Housing has been the bystander of the increment in home purchase and the organization is hopeful to see more of it in this coming festive season. In response to the recent development total launches augmented 17% from a year ago to 60,000 apartments, mid-ranged housing has 36,267 launches this year. The average ticket size for new launches was recorded at 31 lacs, 16% down from a year ago.
Source– LNN (Liyans News Network)