Affordable Housing

 Affordable Housing

Housing is a basic requirement in life and is always a top priority for an individual as well as the government. Affordable housing in the Indian context, would be homes priced under Rs. 20 lakhs, and aimed at the economically weaker section of society, which forms the major chunk of the population. For this segment home ownership is often an impossible dream. In contrast  to the previous governments, the present BJP government has made concrete moves to ensure this section too can realize its dream of emotional and financial security through home  ownership.

The huge mismatch in the demand and supply for housing, the tendency of cities to harbour huge slum clusters and support a huge migrant population in search of  better opportunities , has spurred the Modi Government to launch the “Housing for All by 2022” initiative, also called the Pradhan Mantri Awas Yojana   in  June   this year. Under this initiative the government plans to build 2 crore affordable homes for the urban poor, spread over 305 cities and towns, across 15 states in India. A critical component for the success of this ambitious project is the government‟s decision to decentralize the scheme and in  getting the state governments on board for planning and decision making. "Empowering states is the key to the success of Housing for All," as per Rajiv Ranjan Mishra, joint secretary, Ministry for Housing and Urban Poverty Alleviation.

Along with the “Housing for All by 2022”initiative, the Smart City mission also shows just how deeply committed the Modi government is for providing affordable homes to the EWS section of society.

100 cities have been identified which are envisioned to become „Smart‟  by virtue of their ability to provide its citizens a decent quality of life by having a clean and sustainable environment  and   the   requisite   infrastructure.   According   to   the   Ministry   of   Urban Development some of the key components of „smart  city will be basics like adequate and clean water supply, electricity connections, proper waste management, high speed-internet connectivity and affordable housing. In fact the focus on affordable housing is the most prominent theme emerging from the Smart City mission.  For this upgradation and revamp the union cabinet has earmarked Rs 48,000 crore over the next five years. Another Rs 50,000 crore has been set aside for the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) of 500 cities.

A recurring theme of the present government is affordable housing for all under various schemes and projects. This in turn has spurred the private sector to take a relook on the profitability of building affordable homes. The consistent and extremely high demand for housing in this segment makes a lot of business sense for the real estate developer. The scenario of higher sale volume/lower margins translates into very profits due to the sheer volume of business. In fact most high end developers who have been seeing a slump in the real estate sector in the last few years are fast realizing that building affordable house for the masses is the way to counter market slowdown in the costlier housing segment. In addition it also gives them an image makeover as a socially responsible organization.

In the coming years we can expect to see a concerted effort by both the government as well as the private sector to improve the quality of life of the economically weaker section of society by providing them affordable homes .

For example, some of the parameters adopted by HUDA are mentioned below;

  Project Completion These group housing projects will be launched only after grant of license and the respective developers have to complete the project within 4 years from approval of building plans or environment clearance, whichever is later. It has also been stated that, the license will not be renewed beyond the said 4 year period.
  Price Faridabad, Panchkula, Pinjore-Kalka. Rest of the state at Rs 38750 per sq m (Rs 3600 per sq ft). However, at least 50% of the apartments have to be built with a carpet area equal to or less than 48 sq m (516.67 sq ft).
  Unit Area 28 to 60 sq. meters (301.39-645.83 sq ft)
  Total Project Area 5 to 15 Acres

IDC (Infrastructure Development Charges) 

Borne by Developers as State Govt. has waived off.
  FAR (Floor Area Ratio) Increased to 225% from 175%.
  Ground Coverage Increased to 50 % from 35 % as Normal Practice
  Total Number of Units 1.25 Lakh flats (allotment will be done by draw only).