At present, demand is higher for affordable housing in the Rs 5 lakh to
Rs. 25 lakh category.
ASSOCHAM
urges Real Estate players to invest in creating an affordable housing market to
help ease the supply crunch. With India facing a shortage of about 18.78
million homes, the reason behind falling sales is the mismatch between the
price range of the housing offered & the type and costs of units demanded.
According
to National Housing Board figures, about 10.55 million residences are required
for the economically weaker sections (EWSs) and 7.41 million for lower income
groups (LIGs) section. It is further estimated that another 15 million
households are situated in ‘unacceptably congested conditions’.
Current
demand is in urban & semi-urban areas and needs to be addressed by the real
estate players. At present, builders are mostly offering premium homes, whereas
the demand is higher for affordable housing in the Rs 5 lakh to Rs. 25 lakh
category.
 |
| Rana Kapoor, President, ASSOCHAM |
To
address housing issues comprehensively, ASSOCHAM suggests the following steps:
ü Give Infrastructure Status to Affordable
Housing..
The
Central Government should provide infrastructure status to affordable housing -
this will make low-cost housing more affordable, as the sector will become
eligible for sops, including tax incentives.
ü PPP Platform for Housing..
Also
state Governments must take a proactive role in activating affordable housing
schemes and should work on PPP platforms with builders to develop such
projects.
ü Customized Lending Models..
Lending institutions need to develop
customized lending models, taking into consideration buyers’ requirements. The
RBI should bring in policy changes for accommodating the demand for loans in
the affordable housing category.
ü Introduce New Technology..
Builders
need to use low cost technology. For instance, IIT Madras recently constructed
a 2 storey building using cost-effective glass fibre reinforced gypsum (GFRG)
panels.
India
needs US Dollar 25,700 Crore (US Dollar 257 billion) in investments by 2015 to
meet housing needs of an expanding society, according to an Ernst & Young
(E&Y) report. Of the total investment required, the residential sector
alone will need US D 2900 Crore (US D 29 Billion).
ASSOCHAM
urges both the industry & Government to take synchronised steps in order to
capitalise on this demand and meet the basic demands for a better India.
Mr.
Rana Kapoor
President,
ASSOCHAM
For
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