Fast-Paced Growth in Affordable Housing Sector

by Surya Prakash Digital Marketing Manager

Many measures have been taken to encourage realty developers through various incentives, tax benefits, subsidies, and crucially, institutional funding and are therefore likely to spur growth in the affordable housing sector in India. Affordable housing reflected a growth of 27% between January to September 2017 as compared to an overall residential housing reduction of 33%. This is probably because of an implementation of the PMAY-HFA; affordable housing’s newfound infrastructure status; as well as the much-progressed inflow of formal credit (NBFCs and banks) to the affordable housing segment. The finance of affordable housing is estimated to be a 6 lakh crore business opportunity by the year of 2022, by when the Indian Government seeks to accomplish housing for all Indian citizens. The Government has launched several initiatives to boost this segment across India. Data show a sharp increase in loan disbursements and launching of new real estate projects in this segment in 2016-17. The Credit linked subsidy policies proved to be quite helpful in improving the affordability factor among the Economically Backward Section. Undoubtedly, the Indian Government initiatives taken to boost the affordable housing sector in India will lend new impetus to the real estate industry.

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