Affordable Housing brought in some crucial stability to an otherwise poor year for real estate in India. There was a combination of heavy demand and an incentivized push by the government in 2017. This has turned the interest of developers and builders towards the affordable housing sector in India. It was the saviour of the real estate market last year as it experienced growth while housing launches fell all over the nation in 2017. This was because of the various changes across the sector (Demonetization, RERA, GST etc).
Affordable Housing in 2017
According to Cushman & Wakefield data, the affordable housing segment experienced a year-on-year growth of 6%. The cities included in this are Delhi-NCR, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru, Ahmedabad and Pune. Mumbai was the highest contributor in this category with over 11,000 new units. Pune stood at second-highest with 5700 units.
Affordable Housing in 2018
Interest rates are quite low and the government is offering benefits through the Pradhan Mantri Awas Yojana (PMAY). Therefore, affordable housing will be leading the growth and momentum of the real estate sector in 2018 as well. Moreover, due to the clarity and smoother functioning brought in by RERA, the end users and buyers in this segment can rest easy. Developers will keep up with their delivery obligations. At the same time, investments of the buyers in this sector will be protected because of government provisions. The Prime Minister plans to provide affordable housing for all by 2022. This will provide a huge boost to the real estate sector and the overall economy in the next couple of years.
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