Hopes of Affordable Housing Renewed With New Government

Buyers in several tier-I cities such as Mumbai, Delhi and Pune are looking desperately for affordable housing, as property values have sky-rocketed over the past few years. Though the demand is high for affordable housing, cities such as Mumbai and Delhi are unable to cater to this segment. However, with the new government at the Centre, the hopes for affordable housing across the country seems to be renewed.

Renewed hopes for affordable housing

The population of buyers looking for affordable housing in the country makes up more than two third of the population of home buyers. But most of the tier-I cities have started going beyond the reach of the Indian middle class, making it increasingly difficult for the middle class to buy a house in these cities. However, with a government promising growth and development at the Centre, the hopes of being able to purchase a property in the big cities have been renewed. There are several factors that are leading to these increased hopes for affordable housing.

1) Mr Narendra Modi, the present prime minister, is known to be a development oriented statesman. As such, there are expectations of a strong and futuristic planning for urban renewal and densification. This planning would include improvement of power and water supply, infrastructure, transport networks and availability of green areas.

2) One of the key points in the manifesto of the present ruling party includes creation of 100 new cities across the country, focusing on development of infrastructure, employment and affordable housing. The present government will be expected to deliver on this promise.

3) Low-cost housing is also expected to get an infrastructure status under the present government. This makes it easier for the developers to obtain loans from banks and for a longer term. Moreover, the government is expected to grant the status only to low-cost housing. The manifesto also talks about rolling out a massive program for low cost housing.

4) There are expectations from the real estate sector for amendments in the present Land Acquisition Act makes the real estate nonviable for development of infrastructure such as roads, ports and other infrastructure. With amendments in the present Act, one may look at growing infrastructure in several cities.

With these developments high on agenda for the present government, hopes are definitely high for the middle class segment that wants to own a property in the country.