Why Affording a House is No More Complicated?

Bangalore:  Urban India is witnessing huge supply of apartments, villas and condominiums under expensive price tags. Developers are now developing luxury houses to gain handsome margins. But, only after the economic depression during 2008-09, this scenario changed and the demand for affordable housing increased. Below listed are some points that shows why affording a house became simpler, reports Pritam P Hans of Business Today.

Demand for affordable housing:

The demand for luxury housing have diluted since the economic slowdown of 2008-09. Several developers are making their shift from luxury to affordable housing due to the stiff competition of new players in the market. The main reason for this shift is to generate demand among home buyers and sell their volumes on time.

However, Indian cities are facing shortage of around 18.8 million homes and the number may touched 26.53 million by the end of 2012. This housing shortage will be more for low-income households.

Jaithirth Rao, Chairman, Value & Budget Housing Corporation (VBHC) said "The demand in the economically weaker section (households earning up to 5000 a month) is 26 million units, whereas the shortage in the low-income group (households earning 5000-7500 a month) is three million," reports Business Today.

Developers who are showing their interest in this affordable housing segment including Tata Housing, Mahindra Lifespaces, Patel Realty and VBHC to name a few. For instance, a subsidiary of Tata Housing, Smart Value Homes are coming up with low-cost housing in Maharastra’s Boisar (price ranges from 4-10 lakh), Vasind (Price ranges from 18-28 lakh) and Ahmedabad. Also, VBHS is developing several projects with the starting price of 8 lakh.