The Real Estate Residential Housing Segment is buzzing with the “Affordable Housing” theme Affordable housing was truly defined as housing for people whose income is below the median household income. Over a while, the definition of affordable housing has expanded for EWS, LIG, MIG I and MIG II.

Under PMAY (Pradhan Mantri Awas Yojna) there is an interest subsidy available which aligns well with the government goal of Housing for all by 2022 100 projects under various stages of construction and another 150 projects ready to be launched this year (I hope there will be a proper demand and supply study done before these are announced so that there is no excess inventory in one region and shortage in another – else it will create pain in the area where excess housing is launched and inflation where there is a shortage – FELLOW DEVELOPERS PLEASE DO YOUR STUDY BEFORE GOING TO MARKET) @HOME BUYER:

The government has been extra considerate in giving various goodies to the affordable segment besides the interest subsidy, Grab Your Opportunity and Buy Your Home Now. However please ” DO NOT BUY PRICE – BUY PRODUCT”.

Were you buying a 3 Bed Room or 2 Bed Room? don’t get confused with the price as 25-30-35 Lacs etc make sure you buy the Product: Size, Accommodation, and Location. All three factors are extremely important. Affordable Housing can be productive in Metros if the land is provided by the government at a subsidised price.

The other way is that the government builds infrastructure around metros viz public transport, social infrastructure, etc so that satellite suburbs are created where land is available at competitive prices and housing needs can cater to the people who cannot afford to live in metros Reducing the value of accommodation by reducing the size is not Affordable Housing.

Author Sanjeev-kathuria