The urbanization makes a citizen of India towards affordable life. The rapid growth in population and increase in basic needs led to a movement of people to cities. The migrations of people pave a platform for urbanization. The Union budget of India gives more significant towards housing sector compare to the industrial area to troubleshoot the need of an affordable house.
The lower income group and middle-income group people are widely neglected in housing markets during a few decades before. The real estate developers enjoy the impressive profits during the launch of a premium type of housing property. The Luxury apartments create heavy burden to buyers and led to less affordable to middle-class people. The economic development in 2007 – 2008 makes a significant change in developers mind to go for affordable housing schemes. The exact form of affordable housing schemes got their right shape in 2017 due to urbanization, expansion of middle-class group and government support policies.
Economically weaker sections:
Most of the people are under the economically weaker section and lower income group in India. Thus, the immediate focus is transfer to lower income group of people who are looking for affordable dwelling places.
Government subsidies and yojnas:
The attractive initiated by a government of India convert luxury apartment into affordable flats. The government yojanas offer certain relaxation to middle-income groups such as monetary support, rebate in tax, reduced interest rates and easing in housing development regulation. The lower income groups assist with housing finance at fewer interest rates. The great relax in a procedure of documentation in housing finance provides affordable housing real estate in India.
Transition in home finance:
The affordable housing project is mainly with lower finance value that reduces the risk of lenders. However, it has broad spread among the people and volume of loan borrower is in the high ratio. The steady utilization rates are another vital factor for more investor in affordable housing schemes.
Splurge investment from developers:
The gap between urban areas and urban housing system will be fulfilled with affordable housing projects. The government subsidies attract the developers to invest more in affordable housing projects where more buyers are involved in a business. The developers are grants to use cheaper sources funds and extend their funding through the commercial borrowing. Support from various sources: Right investors always think about multiple projects that protect them from any financial crises. The demonetization had a broad impact on each economic sector and cast a deep impression in real estate sectors. At this situation, the real estate developers are supporting fromprivate financial institutions to government sectors that support their hands in financial matters. On the other side, the demand of publics attracts investors to real estate field.
The housing for all options pushes the developers to fulfill the basic need at the cheaper rate as compare to luxury real estate.
Focus on Budgets:
The government of India provides addition rebate of Rs. 50000 p.a. on housing loan induce the buyers to go for the affordable housing scheme. This rebate creates a demand for affordable house and mainly in towns and cities.
The developers and promoters have future development in real estate field. The gap between affordable house and economic weaker section people will be bridge with government yojanas.
Let all breath under own house soon ………..