A recent survey has revealed that demand for best property in India has risen in the 2017 fiscal year. Affordable property made up fifty percent of new home sales during the October to December quarter of 2016.
What Makes a House Affordable?
Houses that cost less than fifty lakh rupees fall under the category of affordable houses. During the third quarter of the 2017 fiscal year, affordable houses made up the bulk of the share of residential houses sold in the nine largest cities in India.
Urban Regions Leading Demand for Affordable Houses
The cities covered by the survey included Mumbai, Noida, Pune, Bangalore, Chennai, Gurgaon, Ahmedabad, Kolkata, and Hyderabad. Of all the new real estate launched in the mentioned cities during the third quarter of the fiscal year 2017, affordable houses make up sixty percent.
Factors Resulting in Greater Demand
Real estate industry experts and commentators on some of the top ranked property websites in India have stated that the main reason more affordable houses are being built and sold is that there is growing demand for such houses. The government’s actions have also led more consumers to buy an affordable house than otherwise would have. Private players, by increasing their participation in building affordable houses, have played a role in increasing the supply of affordable houses in the recent past. Cities such as Pune, Gurgaon, Noida, and Bangalore have more demand for affordable houses than most other cities in India.
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The Governments Role
Policies enacted by the central government have played a key role in stimulating demand for affordable houses in India. Its policies are geared to lead to the construction of three crore new houses in India that will be home to families that fall under the Economically Weaker Sections and Lower Income Group. The three crore houses for the EWS and LIG households are expected to be completed by 2022.
Laying the Ground Work
Many builders sense a great opportunity to earn profits for themselves from government policies tailored to lead to the construction of thirty million new houses in urban centers in India. More than a few private developers are expected to explore the chance to fuel sales by building affordable houses. Experts with intimate knowledge of the real estate industry are confident that builders will be able to build and sell affordable houses at favorable prices. Government authorities and many leading commentators on real estate sites have stated that the role played by private players will be crucial in closing the current gap in demand and supply of affordable housing in urban regions of India.
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