October 25: The reality of Affordable Housing in India is totally different; after the COVID-19 pandemic in India and many countries, people want to get rid of rents and want to move in their own houses where EMI can at least contribute to their home, which house would eventually belong to them.
With Rapid urbanization in Metro Cities in India, the Country’s need for affordable housing is increasing. If we analyze the average Lower middle-class income of an individual in the metro city, which consists of 70% of the total population in metros who need their own shed to reside is 15k-25k PM, i.e. = 3.00 Lacs Per annum.
For Lower middle-class Affordable Housing, some provisions should be there
- Bank ROI
- Bank Eligibility Criteria where a person with less than 20k income can also buy his dream basic home.
- PMAY Govt Subsidy schemes can be extended for a longer duration. It could be even easier for them to pay off the loans if the subsidy is immediately debited from their loan liability.
- More percentage of land allocation should be done for EWS/LIG flats in townships and societies where multi-stories expensive apartments are being built so that more Real affordable houses can be delivered.
- The size of the apartment should at least be 500 sq. ft carpet area for a sustainable dwelling unit which is 300 sq. ft under current EWS schemes.
Sajan Patel, Chief Director of Propshop Noida Strategic speaker, Author, and Business coach, says, “Though Govt. Of India is making extreme efforts to provide homes through EWS/LIG schemes in Major Metro cities like Mumbai, Delhi NCR, Bangalore, but there is a huge deficit among demand v/s deficit. Research Portrays that the applicants for EWS/ LIG flats are far more than the actual units made or delivered the demand for affordable housing is growing rapidly and is expected to grow 3 times by 2030.”
Affordable housing definition is still different in NCR and some of the metro cities, which range from 18 Lac to 20 Lacs, but the actual affordable housing termed as EWS/LIG, which ranges from 5 lacs to 10 Lacs, is the need of time. Due to urbanization, advanced education, and soaring job opportunities in metro cities majority of the rural population is shifting to urban areas; hence the demand for affordable housing is growing. Real estate governing body RERA, in collaboration with Govt. of India, has already brought in many reforms such as
- AHF – Affordable Housing Fund with an initial corpus of 10,000 Cr to reduce the interest burden on affordable housing.
- U/S 80 IBA the tax housing project which is approved between 01.06.16 to 31.03.21 were 100% deduction on the profits & gains derived from the business of developing and building projects u/s 80 of Income Tax, 1961, which will lure developers to participate in the housing for all moves.
Govt has also taken major steps by modernizing construction under the Housing for All by 2022 Scheme. Like Prefabricated Sandwich Panel System, Monolithic concrete Construction System, Precast Concrete Construction System, 3D Precast volumetric, Light Gauge steel structural system, Stay in place Formwork System, which is a goal for 3S Skill, Scale, and Speed for speedy development of quality construction houses. Some of the best ways can fulfil the needs of affordable housing in India.
- Change in land allocation norms for EWS/LIG flats in a society or township and increase the ratio.
- Implementing the PPP model is more lucrative for the beneficiary rather than the developer.
- Affordable ROI for Loans on EWS/LIG, More stretched payment plans with less ROI, More transparent allocation system for Draw of such flats.
Affordable housing actually means less poverty in any developing country, constructive, thoughtful Government should focus more on Housing for the majority of the population to turn out in a developed nation which will raise standards of living and also give a boost to their economy especially to prevailing poverty.
