Affordable Housing Market Expected to Grow in the Next Few Years
BENGALURU: Recent study conducted by the Naredco, PwC and APREA predicts that the affordable market sector will touch a massive $100bn mark in the next 5-7 years. The change is expected to occur due to factors such as rising economy and the ever-growing urbanization.
The study also states that the innovation in technology, simplification of policies and effective finance planning are the factors that will motivate private sectors to contribute in the process of making real estate affordable.
Furthermore, portraying the current situation of the market, news reports suggest that there is a shortage of around 60mn housing units which includes 40mn in rural and 20mn in urban. Considering new launches in the first half of 2016, when compared to last year, the growth rate of affordable housing segment has doubled. About 17,000 new launches were recorded in top eight cities of the country.
Attractive schemes such as the National Urban Housing and Habitat Policy, and Pradhan Mantri Awas Yojna have failed to meet the ever-growing demand of the market. Additionally, complex and time-consuming processes such as building plan scrutiny, land conversions, receiving construction permits, and approvals are making the situation worse. Reports also stated that connectivity and considerable weak external infrastructure are also responsible. In this manner, buying houses at affordable rates has become difficult for the urban people.
As a suitable solution, simplifying the current policies and creating more infrastructures is the only way to meet the rising demands and make housing sector affordable for the future.