Affordable housing has created a revolution in Indian real estate sector. The scheme has received the impetus from the Centre initiative of “Housing for all by 2022”, which intends to shelter the bottom of the consumer pyramid. As developers are racing to reap the benefits from the mid-income category, which comprises the majority of our population, real estate sector is pooled with affordable homes.
Though different countries have different definitions, mostly the core interpretation is the same. Affordable homes are the category of homes which are affordable by the mid-income and low income section of the community. Affordable housing is the key issue in the developing nations where a significant portion of population is not able to purchase homes at market rates.
Why Affordable homes
While the fast spreading urbanisation had resulted in the betterment of the living conditions in urban areas, it has shattered the settlements of the economically average and weaker section of the population. The property prices rocketed up in prime locations making real estate a costly asset class of investment. The average families were unable to pay large sums of money which forced them to accrue feasible lands which are typified for poor housing conditions and congestion. Affordable housing will bridge this gap by supplying good quantity of quality homes in the urban areas.
Features of affordable homes
Majority of the people get confused by the term affordable homes. Many consider it as a cost effective home based in a less important location while comprising on amenities. Affordable homes definitely intend to develop a cost effective home, but it doesn’t imply to comprise on the quality of living. Here are the typical features of affordable homes.
- Ideal Space Planning: The home behaves well when the space within it is planned effectively. While effectively reducing the space, affordable homes reduce the cost however maintaining similar functionality of a larger space.
- Land Cost: The other important factor that affects the cost of a home is the location. Affordable homes generally will be based on the prospective outer or emerging areas of the urban cities where social infrastructure developments are planned.
- Less Maintenance: A home becomes truly affordable when it requires less maintenance. A careful and selective incorporation of amenities and specifications will make a less maintained module without reducing the functionality.
- Save Tax: The budget 2016 has provided 100% deduction for profits for undertaking flats upto 30 sq mtrs in major four metro cities and 60 sq mtrs in other cities approved to be completed in the next three years.