Processing .....please wait.. 
The article has been forwarded.... 
Real Estate >> News
One Step Closer Towards Affordable Housing
By
siliconindia
|
Wednesday, December 11, 2013
.png){kind=logo}
Bangalore : The prices of property have incessantly been on the rise and despite the promise of affordable housing, it still seems a distant dream for many. Although the government has been taking several initiatives to promote affordable housing in the country, especially in the Metros, this segment has not been able to capitulate upon its potential and while so many are in search of that elusive perfect house, seldom find it.
According to a report by KPMG, the housing shortage is estimated at 18.78 million households in 2012. Out of these, the most prominent housing shortage has been found for the economically weaker sections and the low income groups. Together, they constitute for over 95% of the total housing shortage.
However in the four year period from 2009 to 2012, there has actually been a 25% decline in urban housing shortage. This has largely been the work of private developers who have launched many affordable housing projects. Even though the performance of the real estate sector has matched the growth targets and expectations as per the development and the increasing population of the country, there still remains a shortage of around 18 million houses to be fixed.
Attempts are being made by the central government to aid in this problem of housing shortage for the low income groups by introducing a draft policy that is expected to allow for the allotment of affordable houses for the economically weaker sections (EWS) and the lower income groups (LIG). The process for passing this draft is underway. This draft provides for households with an annual income of less than 2 lakhs to register for subsidised houses. These low cost houses will have a proposed area between 21-27 sq meters and 28-60sq meters for the LIG and the EWS categories respectively. The houses, expected to cost between 4 lakhs to 10 lakhs will be developed in partnership with either the state housing boards or private developers. The individuals to which the houses will be allotted will be selected through a random draw at fixed rates determined by the government.
This also presents an opportune moment for private developers to utilise and take advantage of the huge supply-demand deficit in the affordable housing market. This could prove to be even more beneficial to the real estate industry if the government decides to implement a single window clearance mechanism for all affordable housing projects.
Delay in project approvals can result in a 25% to 30% increase in the cost. Keeping in mind the low-ticket size, procedural delays cannot be afforded, neither can the cost be passed on to the end user. Hence, for the intervention to be successful, the draft needs to be approved quickly and project approvals need to be obtained as soon as possible.
Read More News :
|
|
