The demand and the need for low cost housing in
India are huge. But the supply is extremely poor. Due to lack of margins, not
many real estate companies were interested in these projects. But with the
Governments game changing initiatives, dreams of the Indian middle-class are
all set to be realized.
Much Needed Loans Become Easier to Access
Interest subvention on home loans under the
Pradhan Mantri Awas Yojana will make it easier for buyers to access homes.
Homes that were too costly earlier are likely to become affordable under this
scheme. Home loans up to INR 50 lakhs for the first time buyers are to be given
out according to the new budget scheme. Under the PMAY, the subsidy on home
loan interest is going to be increased too.
Grass Root Changes in the Industry
It is a structural change from within that is
going to help the housing industry. The tag of infrastructure being given to
affordable housing will improve things tremendously. Developers will now have
long term funding at cheaper rates. The implementation of Real Estate
Regulatory Act (RERA) will also help the industry reform. Once there is more
clarity in the industry the relations between the buyers and developers will
improve. And with the curbing of malpractices and measures that make sure
projects are completed on time, the industry is moving towards a better,
transparent future.
With all these changes gradually improving the
housing industry, affordable housing is
definitely achievable in the near future.