The boost time has begun for the affordable housing sector. In the next couple of years, about one lakh apartments are likely to be constructed only in Delhi-NCR region by the government and big brands of the housing sector.
In this year’s budget, the government has announced to bridge-up the demand for affordable housing with the help of private developers.
Many developers including Supertech, Signature Global, Gaursons, Raheja Developers, BDI, Tulip and etc are formulating the plan to launch residential projects in affordable housing category.
A plan is being created by Supertech to launch about 40,000 affordable housing units in NCR region in the upcoming years. Supertech has also planned a project to complete the construction of about 25,000 house by 2020.
Signature Global is a runner-up developer in the affordable housing market and the company is planning to launch come up with 30,000 apartments in the next one year. The company has already launched 7,500 apartments and the task is under process to launch another 20,000 odd-apartments in Delhi-NCR by the end of the next financial year.
Likewise, Gaurson and Raheja Developer are also creating the plans to launch 10,000 apartments each in NCR the next couple of years.
By taking part in this segment, many developers converting their housing projects into affordable ones by capping the maximum unit size at 60 sq. mtr. (643 sq. ft.). Most of these projects are situated in Greater Noida, Raj Nagar Extension, Yamuna Expressway, Tronica City, Faridabad, Bahadurgarh, Gurgaon, Daruhera, and Bhiwadi.
Besides, the developers are also working to keep the housing unit’s price affordable between the range of Rs. 15 lakh to Rs. 35 lakh.
The affordable housing segment has various measures that would enable the developers to sell units at very competitive prices such as infrastructure status and extending tax benefit under Section 80IB etc.
The budget created a big change in this segments which benefits both builders and buyers. There is interest subsidy on home loans and the tax benefit on interest payment for the buyer under the affordable housing scheme.
Making carpet area – as opposed to a super built-up area – the measure of an ‘affordable’ flat, a 60 sq. mt. – or 643 sq. ft. – flat becomes a livable option for even the middle class. This will increase demand manifold.