According to a recent report “to meet the target of presenting accommodation to all by 2022, the government together with the private sector needs to work to boost the supply of affordable housing, which would convert into business opportunity of Rs 900000 crore for the builders “.
To understand the dreams of millions, the government, real estate developers and other investors have to play their role to develop affordability of homes for the low-income home buyers.
According to survey, the affordable housing is estimated to be worth Rs 900000 crore for builders and Rs 700000 crore for housing finance companies.
The survey confirmed the first attempt of offering housing for the metropolitan poor failed to maintain with the rapid growth, which led to low-income families living in confined housings with narrow basic facilities.
The government calculates approximately a shortage of more than 18 million residences, of which 95 per cent are in the EWS and LIG group.
A study about 22 cities revealed that at least 30, 500 homes below Rs 10 lacs have been launched in 132 projects across those markets in the period between June 2011 to January 2013.
Further, around 30 per cent of the supply is priced below Rs 6 lacs and developers are constructing smaller units such as one-room kitchen in these cities which are more affordable and they sell 25 per cent quicker compared to larger formats like 1 or 2 BHK apartments, the report said.
Access to housing finance for formal and informal low-income customers has also improved, the report said, adding that numbers of new players have entered this market and today over 10 companies are serving the low-income customer.
These new companies have a combined loan portfolio of Rs 1,000 crore, and are growing at 100-300 per cent per annum and have near zero NPAs.
The survey noted that many of the EWS and LIG families cannot afford privately built housing unless the government provides some subsidy.
At present, in most cities, a privately built flat of carpet area of 269 sq. ft. would cost about Rs 5.6 lacs. A family at the top end of the economically weaker segment with access to Rs 60,000 for a down payment can only afford a home worth Rs 2.95 lacs. Therefore an EWS family requires a subsidy of Rs 2.6 lacs to buy the smallest stipulated privately built home.
