With Affordable Housing (AH) becoming the buzzword across the country for both realtors as well as potential home-owners, here is a quick fact-check on what it really entails
“ Our projects in the affordable category come with amenities such as indoor and outdoor playing areas, multipurpose community hall, park, gym, convenience store, etc. Also, project locations are chosen based on accessibility to schools, healthcare facilities and connectivity to public transport”
A MUMBAI-BASED DEVELOPER
“ Increasing carpet area eligibility under Credit Linked Subsidy Scheme (CLSS) gives impetus to both, home-buyers and developers. Under the Middle Income Group (MIG-I) category, beneficiaries whose annual income is between Rs 6 lakh and Rs 12 lakh can avail 4 per cent interest subsidy on a loan of upto Rs 9 lakh. For MIG-II category, beneficiaries with annual income of Rs 12 lakh to Rs 18 lakh get an interest subsidy of 3 per cent on a loan of upto Rs 12 lakh. Since the benefit is provided upfront, the downpayment reduces. Therefore, more customers will be eligible to buy homes”
MYTH: AH PROJECTS ARE USUALLY SMALL UNIT SIZES
FACT: The AH category has witnessed serious growth in the last few years owing to the Central Government’s agenda of ‘Housing for All’ by 2022. Thus, the primary objective of Pradhan Mantri Awas Yojna (PMAY) is to ensure housing for people in urban and rural areas. With the recent decision to increase carpet area of houses eligible for interest subsidy under PMAY, the maximum unit sizes for AH projects is as much as 110 sqm or approximately 1,100 sq ft. Of course, such unit sizes can be availed not in central locations owing to high cost of land acquisition, but within the city’s periphery.
MYTH: THERE AREN’T MANY AMENITIES IN AH CONSTRUCTIONS
FACT: While affordable housing as a segment has been around for several years now, it has received a big impetus since the launch of PMAY and other regulatory reforms. Such misconceptions date back to the period before the reforms when unverified real estate players would offer shoddy constructions and poor amenities under the banner of ‘affordable housing’. However, with many reputed players competing in the high volume AH segment, quality of amenities in a project is a crucial competitive advantage.
MYTH: THE PROPERTY APPRECIATION PROSPECTS ARE LOW
FACT: It is true that unlike regular residential or commercial assets, homes constructed under the AH category will witness atypical appreciation curves in the months to come. According to real estate ratings and research agency Liases Foras, new home sales in the country’s top eight property markets increased by 5 per cent year-on-year in the quarter ended September 2017, powered by a 24 per cent surge in affordable housing. With many new players entering this segment, supply is catching up with demand, owing to improved amenities, infrastructure, and connectivity.
Source : Times of India