Builders who construct Property in India have an additional reason to build affordable housing since the builders will be able to borrow capital for such projects at a lower rate of interest.
Housing for All by 2022
The government is offering numerous incentives and tax benefits to encourage the construction of affordable housing with the end goal that by the year 2022 there would be housing for all in the urban regions of the country. Builders of real estate in the country have been building a larger number of smaller houses since the government granted affordable housing infrastructure status. Some builders have even begun to alter buildings currently under construction into affordable houses and buildings whose plans had been decided before the government granted infrastructure status to affordable housing are being tweaked and reshaped to be completed as affordable houses.
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Benefits to Builders of Affordable Housing
There are tax benefits to builders who take steps to begin and successfully complete affordable housing projects in India. Additionally because affordable housing has been granted the status of infrastructure, the builders who begin such projects are eligible for institutional funding at better than normal terms.
After the government’s encouraging plans to promote construction of affordable housing in India, a prominent builder in Mumbai modified its project in Borivali into one of 400 apartments where each unit size is now to be of a 1 BHK configuration. This developer now offers the flats of sizes 350 to 380 square feet at prices ranging between 60 to 63 lakh rupees.
Developers are choosing to build homes for the affordable housing segment because doing to leads to a better management of cash flows which in turn leads to better management at the construction site and to a higher sales velocity. According to this site and to some of the best property sites in India the demand for homes in the affordable housing segment is genuine and thus the sales velocity is high in this segment. One of the top builders of who launched an affordable project in Mumbai stated that they sold two thirds of the units they launched three months ago.
Why Affordable Housing is Catching on?
Experts in domestic real estate have stated that the affordable housing trend is catching on and besides the quality of the builders work and easy financing options for buyers, the ticket size plays a vital role in decision making and ultimately in sales conclusion. According to this property site, numerous builders are gravitating to towards building affordable property as building and selling such property has now become financially viable.
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