Affordable Housing Development, Shortage of Land: Knight Frank
Affordable Housing Development: Lack of focus on making developable land available by the government is limiting the affordable housing development in the country, according to real estate consultancy Knight Frank India.
National director – advisory, Knight Frank India said one of the major constraints for Affordable Housing Development is vast inefficiently allocated urban land by the government in the country in the forms of salt pans, buffer zones, defence lands, port trusts, railway lands, government colonies, etc.
Also failure to look beyond the top 30 cities is also hindering the scope for affordable housing. These cities are only about 13% of the country’s population, with only 20% of this population with annual income more than Rs 5 lakh, he said.
He also feels that the government continue to focus on and subsidise the demand side, while a far greater coverage can be achieved by subsidising occupancy or focusing on the supply side.
Ratio of home loan to gross domestic production (GDP) stands at 9% in India, compared with around 20% in China, around 29% in Malaysia and around 88% in the UK.
The major reason to this low ratio, according to him, has been high annual disbursement of home loans, around 51%, in metropolitan area, followed by urban areas with around 27% share, while the rural and semi urban area having the lowest share of only about 22%.
Also, 87% of rural and semi urban population of India gets only about 20% of the total mortgage disbursements, he added. He also highlighted on need to evolve a mass housing model, optimising design, development, marketing and servicing costs for Affordable Housing Development.
Source Link- https://realty.economictimes.indiatimes.com/news/industry/shortage-of-land-limiting-development-of-affordable-housing-knight-frank/61782598