Riding on the central government’s incentives and great home loan EMI discount affordable housing sector is sitting on the top of the demand list. Low-budget project development in city area and outskirts has been keeping developers active in one after the other project deliverance which leads to a shortcoming in new projects, especially the high-end ones. The number of budget housing units launched in and something like Chennai developed 102 housing estates in the first four months of 2016 to 124 in the same period this year.
Cushman & Wakefield market study: According to the market study report of property consultant Cushman & Wakefield, barring the last quarter Chennai and its outer edge areas has found that the number of affordable housing units launched had over and over again increased in 2016. The study also revealed that 124 mid-level units (2 BHK) and 748 premium units (3-4 BHK) were launched in the duration of the first four months of 2017, but no new projects (3000-4000 sq ft area) have been announced in the HIG segment.
What CREDAI says: CREDAI (Tamil Nadu Chapter) points towards government subsidies which is the reason behind increasing market demand of affordable housing apartments. As per the Confederation of Real Estate Developers Associations of India (CREDAI) Tamil Nadu Chapter, 20% members who used to see the luxury housing sector currently after the affordable housing sector as 65% of market demand has been coming from budget flats only. Affordable houses that meet certain parameters are eligible for benefits under the Pradhan Mantri Awas Yojana (PMAY). Budget apartments with an area of 700 square feet in the suburbs are priced between `20 lakh and `50 lakh depending on the location.
“Presently all the metro cities and other big business areas in realty are dealing with unsold inventories. Developers are busy in clearing their back-logs through tempting offers and discounts. Affordable housing is the only sector that is continuously performing under the liquidity crunch in present market. Low-budget flats in Kolkata are single-handedly contributing 30-35% sale despite this flat market,-said West Bengal RERA and realty expert Mr. Mahesh Somani.
–LNN (Liyans News Network)