Affordable housing has become the new reality of the real estate market today. The main reason behind this is the strong vision of our hon’ble prime minister Narendra Modi.
Under this scheme, he visions a mission of housing for all by 2022.The affordable housing scheme has helped many families to own a home in times when it seemed almost impossible to them.
The property rates have always been subjected to fluctuations and as per records they have only increased more than they have decreased. This made the decision of buying a house of their own very difficult for families with low income or medium income.
This has also contributed to the economy of the nation in many ways. However, since the launch of affordable homes, this economic scenario began to change. Most of the projects under this scheme are priced at 20 Lakh to 25 Lakh. The scheme also offers very affordable EMI options and other facilities which make the process for MIG and LIG group even smoother.
In the past years, this scheme has emerged as a great success and has influenced the real estate market drastically. The property investment has now come to be regarded as one of the major investment options.
In recent years, a large sum of Indian economy has come from the real estate sector. Talking statistically, the number is very impressive and significant. This shows the impact that ‘affordable housing’ has already had on our economy.
In the budget 2019, the real estate sector was deemed the utmost importance after granting relief in individual income taxes and farmers income by Prime Minister Narendra Modi.
These amendments coupled with additional deduction for pre-construction interest, reduction of stamp duty on affordable housing, GST incentives for home buyers has ensured a more inflow from home buyers.
This would result in more number of home buyers investing in the affordable segment which in turn will provide a great boost to the economy.
In such a scenario where affordable housing is taking lead in the real estate sector, one in every five houses in India now costs less than ₹25 Lakh. This attracts many home buyers especially the first time home buyers. The extension of the policy has further ensured continuous inflow.
All these reasons combined, give drastic results which boost the economy greatly. Therefore, it has been calculated that the “affordable housing” potential market size in urban India is predicted to grow about 1.5 times. As compared to an estimated 25 million households in 2010, the number is forecasted to grow to 38 million in 2030.
The sector is seen to benefit not only the medium income group but also people belonging to other economic sectors of the society. It is seen as overall growth and people observe it as a great opportunity for investment in the real estate sector. Therefore, an overall analysis of affordable housing sectors infers a boosted economy for the country.