Affordable housing sector is certainly the sales-driving tool for Indian real estate sector. Now the maximum supply is deriving from 900-1200 sq ft MIG segment. Apartments ranging 300-600 sq ft will be considered under PMAY credit linked subsidy scheme. These apartments can be held on by those people whose annual income is a level of up to RS. 6 lac. According to the affordable housing report published by leading property portal in Kolkata, MIG apartments are the new mass scale demand absorber in Indian real estate field.
The supply flow encloses 900-1200 sq ft MIG 1 and 2 government categorization for CLSS benefit. This segment has accounted for greater than 40% of the total demand in urban India in the January-March 2017 quarter. The sizes of 1350-1500 also witnessed about 14% of demand. The apartments with 600 sq ft built-up size have seen 11% demand across cities.
Demand and supply volume of the affordable housing sector is reflected through the project search and the pattern of property distribution of the particular sector. The report also indicates affordable housing and its different aspects, policy changes, informal renting, taxation on an unoccupied property and the profits under PMAY. Currently, the demand and supply is proportionate and most of the projects are in advance-completion stages. This is due to slow demand and increasing level of completed stocks entering the market.
Government policies such as Housing for All (HFA), Affordable Housing, CLSS and Pradhan Mantri Awas Yojana (PMAY) have made affordable housing sector the centre of attraction of Indian real estate sector. Yet, there is a major need for rapid project growth in order to provide 2million homes for EWS of the country. The Ministry of Housing and Urban Poverty Alleviation (MHUPA) has been constantly in search of new way outs in order to make this sector a healthier place for private investments. The report highlights that there is still a severe shortage of project deliverance to materialize PMAY aggressive project ‘Housing for All by 2022’. The demand for 300 sq ft size holds the lowest priority for Tier I cities like- Noida, Pune, Hyderabad, Gurgaon, Bengaluru and Ahmedabad.
Apartment size 600-1300 sq ft has had ample deliverances across these cities. Expensive cities like Delhi and Mumbai barely have any need for smaller size supply chain. In most of the cases, buyers demand larger FAR 1000-1200 sq ft against limited outlay. On the other hand, redevelopment in lower income group colonies such as Uttam Nagar and Chattarpur have ensured that the supply of smaller size properties has also need to get introduced in the luxury property market. The reason why 600-1300 sq ft apartments have topped the chart is the demand gets a direct link with the purchase capacity of the mass income group of the prime property market. The growing preference for larger units indicates the average buying aptitude of the prime realty contributor cities.
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