Affordable Homes Suffering From Low Supply Issues: NHB Chairman R.V. Verma


Despite the availability of funds and finances, affordable housing in India is suffering from supply constraints, Mr. R.V. Verma, Chairman and Managing Director (CMD), National Housing Bank (NHB), has said.

Affordable Homes Price..!

Unofficially, houses priced between Rs. 5 lakh and Rs. 12 lakh are called “affordable housing”. These are categorised into LIG (lower income group) and EWS (economically weaker section) houses.

According to Mr. R.V. Verma, developers’ focus has primarily been on the middle income and high income group homes. As a result, while housing finance companies were ready to help low income households, supply of such homes is restricted.

“I believe that they (developers / builders ) have not build the right business model yet. That needs to be done as soon as possible,” Mr. Verma said while speaking at Bengal Leads, a 3 day conference on urban infrastructure, organised jointly by the CREDAI (Confederation of Real Estate Developers’ Association of India) and the West Bengal Government.

According to Mr. Verma, urban housing shortage is estimated at about 1.8 crore flats (with 95% in LIG & EWS categories). Despite the builder / promoters community being well geared to cater to the needs of affordable housing, they fail to do so because of lack of confidence with the policy makers. He said developers’ hoping for a scaling down in interest rates was “unrealistic” &  instead, they should opt for interest subsidy schemes of the Centre and state govt.

The loans will help low-income households by way of credit to HFCs on the condition that it is used only to build houses. NHB, the apex bank for regulating and supervising housing finance companies, will raise nearly Rs 6,500 crore by the end of June next year. 

The amount will be raised through tax free bonds and rural housing funds, Verma said. It has already raised Rs 8,000 crore so far this fiscal. NHB follows the July-June accounting year.

Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Coverton Insurance Broking - a one-stop solution for businesses and individuals seeking expert risk management

Coverton Insurance Broking Launches Comprehensive Insurance Broking Services to Simplify and Enhance Risk Management for Businesses and In...