Indian Low-income urban families need 1.5 crore Homes..!


Low - income urban families need about 1.5 crore (15 million) houses in a price range of Rs. 4 to Rs. 10 lakh, presenting an untapped opportunity of a whopping Rs. 9 lakh crore for real estate developers, according to a report by Deloitte India.

Minimum 30,500 housing units were launched below Rs. 10 lakh by private developers across 22 cities between June 2011 & January 2013, of which maximum (About 39%) were in Gujarat.

There is an increased interest in supplying housing & housing finance to low-income customers. But, the gap between supply & need is huge, according to the report 'State of the Low-Income Housing Market' launched by Housing and Urban Poverty Alleviation Secretary Mr. Arun Kumar Misra.

"There is a large proportion of low-income urban families, with a monthly household income of Rs. 10,000 to Rs. 25,000, who can afford privately build formal housing costing Rs. 4 lakh to Rs.10 lakh without any aid from the government.

"There is an estimated demand of 1.5 crore houses from these low-income customers, which translates into an opportunity of Rs. 9 lakh crore for developers and Rs. 7 lakh crore for housing finance companies" Deloitte report said.

The housing finance, which was almost non-existent for these low-income customers five years ago, is now accessible with above 10 housing finance firms lending to low income customers.

The report highlighted that three cities - Ahmedabad, Mumbai & Indore - are leading in providing housing below Rs. 10 lakh with above 20 projects in each city.

"The western and central states of Gujarat, Maharashtra & Madhya Pradesh are doing better than the rest of the country. In the northern region, there is a limited LIH supply," the Deloitte report said.

Out of 30,668 houses launched during June 2011 to January 2013 period, Gujarat witnessed maximum supply of 11,823 units followed by Maharashtra and Madhya Pradesh with 8513 and 4759 units, respectively.

Asked about the reason for Gujarat being ahead of other states, the co-author of the report  Mr. Ashish Karamchandani said: "Developers and promoters in Gujarat had entered in the low-income housing earlier. Also, the approval time for projects is faster"

Low cost House Supply

June 2011-Jan. 2013 (Numbers)

Chennai  30

Coimbatore 998
.


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