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When housing gets affordable

9/10/2017

13 Comments

 
So you thought, housing (read property investment) prices were going to go through the roof like everything in India has been relatively? Well, the present government has an eye on the future and have declared an affordable housing scheme. It’s called the Pradhan Mantri Awas Yojna which aims to provide shelter to all in India! This is a move towards builders therefore building more affordable housing.
Anyway, while the ‘Aaam Admi’ has his eyes on these particular government plans, elsewhere too builders are realising that they need to harness the investment potential of the average and moderate middle income groups. Even the lower income groups are being taken into the ‘umbrella,’ a 4% interest rate rebate being offered for housing loans upto Rs 9 lakh and 3% for upto Rs. 12 lakh.
Even developers are being offered incentives. Affordable housing has now been granted infrastructure status by the government, therefore developers can enjoy cheaper sources of funding, including external commercial borrowings. Such properties will also be allowed more completion time, thus raising completion from three years to five years.
Sources of finance for borrowers (those wanting to buy) are also many, including state run banks, private banks and housing finance companies. So all in all, the picture looks very good for a prospective and needy buyer from the middle and low income groups who starts to see it as a seamless process of acquiring property. With the consistency in sales achieved, developers too are encouraged to build and fearlessly posit properties that they know will not be difficult to sell in the affordable housing categories.
The Housing Finance Companies stand out quite well, who are offering housing schemes at 8.5 to 9 percent. Things are looking up even in terms of the percentage of finance buyers can avail, now standing at 85% percent of the housing units that are ready or nearing completion. The HFCs also pose a ready source for loans where otherwise the self employed, professionals or small businessmen would find it hard to get them from a traditional money lender.
India’s urban population is growing at an average of 2.1 percent every year. By 2031, it will reach 60 crores (is today 37.7 crore). The government and in turn the developers have realised that 1.9 crore families have not bought homes due to the non affordability so far. Therefore they are doing the utmost for developers to embrace constructing affordable housing plans. Ninety-six percent of those buying are economically challenged groups. Therefore, developers will rush to implement feasible housing plans.
In all this, there is scope for someone in one of the higher middle income groups to have options of property that earlier seemed ‘just out of commonsense economic range’ even if affordable. Now they will be less reluctant buyers. So, smell the coffee beans! Your dream investments are now going to be extremely affordable.
So you thought, housing (read property investment) prices were going to go through the roof like everything in India has been relatively? Well, the present government has an eye on the future and have declared an affordable housing scheme. It’s called the Pradhan Mantri Awas Yojna which aims to provide shelter to all in India! This is a move towards builders therefore building more affordable housing.
Anyway, while the ‘Aaam Admi’ has his eyes on these particular government plans, elsewhere too builders are realising that they need to harness the investment potential of the average and moderate middle income groups. Even the lower income groups are being taken into the ‘umbrella,’ a 4% interest rate rebate being offered for housing loans upto Rs 9 lakh and 3% for upto Rs. 12 lakh.
Even developers are being offered incentives. Affordable housing has now been granted infrastructure status by the government, therefore developers can enjoy cheaper sources of funding, including external commercial borrowings. Such properties will also be allowed more completion time, thus raising completion from three years to five years.
Sources of finance for borrowers (those wanting to buy) are also many, including state run banks, private banks and housing finance companies. So all in all, the picture looks very good for a prospective and needy buyer from the middle and low income groups who starts to see it as a seamless process of acquiring property. With the consistency in sales achieved, developers too are encouraged to build and fearlessly posit properties that they know will not be difficult to sell in the affordable housing categories.
The Housing Finance Companies stand out quite well, who are offering housing schemes at 8.5 to 9 percent. Things are looking up even in terms of the percentage of finance buyers can avail, now standing at 85% percent of the housing units that are ready or nearing completion. The HFCs also pose a ready source for loans where otherwise the self employed, professionals or small businessmen would find it hard to get them from a traditional money lender.
India’s urban population is growing at an average of 2.1 percent every year. By 2031, it will reach 60 crores (is today 37.7 crore). The government and in turn the developers have realised that 1.9 crore families have not bought homes due to the non affordability so far. Therefore they are doing the utmost for developers to embrace constructing affordable housing plans. Ninety-six percent of those buying are economically challenged groups. Therefore, developers will rush to implement feasible housing plans.
In all this, there is scope for someone in one of the higher middle income groups to have options of property that earlier seemed ‘just out of commonsense economic range’ even if affordable. Now they will be less reluctant buyers. So, smell the coffee beans! Your dream investments are now going to be extremely affordable.

Author: Vikram Afzalpulkar @PropertyAngel
13 Comments
Bhavna dme link
13/10/2017 04:47:02 am


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Reply
Sanchit jhally link
15/10/2017 10:22:56 pm

Nice blog and informative one keep posting

Reply
sonal
26/10/2017 02:43:42 am

Informative post .Thank you for sharing this.
<a href="http://www.sobhadreamseries.ind.in/location-map.html">Sobha Dream Series</a>

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Sobha Dream Series link
3/11/2017 01:58:32 am

Excellent post! I must thank you for this informative read. I hope you will post again soon.

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Rohan Upvana link
6/6/2018 04:41:27 am

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Sobha Dream Gardens link
7/10/2018 09:20:25 pm

sobhadreamgardens.net.in great residential project from Sobha Builders.

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Sobha Dream Gardens link
15/10/2018 04:11:26 am

Good post with loads of information about affordable housing. Sobha Dream gardens is the new pre launched residential project in Bellahalli. Visit the website http://sobhadreamgardens.houseey.com/ to get the idea about the apartments and its specifications.

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Sobha Dream Gardens link
30/11/2018 05:13:03 am

The ultimate project for new home looking customers. Prime location.

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Sobha Dream Gardens Bellahalli link
30/11/2018 05:19:44 am

New launch property in hanisandra Best and premium Land mark Project in bangalore.

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Shapoorji Pallonji Mahogany link
21/12/2018 01:36:06 am

Shapoorji Pallonji Mahogany Binnypet best property in Bangalore. New launch in 2019

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Nest Habitation link
13/5/2019 02:14:09 am

Appreciate the write-up. Very informative blog and very clearly explained all about Housing. Keep posting great post.
If you expect to get possession of your home in time, no project delays, cost-effective purchase, affordable property prices, good construction quality and a secure living in the new villas/house/apartments, then you can definitely go for Nest Habitation (http://www.nesthabitation.com/) which have the perfect house/villa/apartments for you at a perfect location and will provide the right motivation to home buyers.

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POTTER link
30/6/2019 09:48:23 pm

thanks for the information!


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saathi link
5/9/2019 10:45:50 pm

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visit historical place i was need service apartments so i got pajasa service apartments so i am suggesting you if you have need service apartments you can contact with pajasa i have mentioned site below. Click here https://www.pajasaapartments.com

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