One In Every Five Houses Sold In India Now Costs Less Than Rs 25 Lakh
One in every five houses sold in India now costs less than Rs 25 lakh, the affordable category. With government doling out housing subsidies for the Economically Weaker Sections (EWS) and increased focus of the developers on the segment, the contribution of affordable houses to total residential sales has gone up to 21 per cent from just 8 per cent three years ago, numbers from real estate consultancy Liases Foras show.
Affordable housing has become the fastest growing segment in Indian realty with maximum new launches as well. Three years back, builders were dedicating supply to the premium segment (above Rs 50 lakh). Today, the market has rationalised and a major part of the new supply is directed at the affordable segment, founder and MD of Liases Foras told.
Between the first quarter of 2016 and 2019, when affordable segment almost tripled in sales, the share of luxury homes with a tag of over Rs 2 crore went down from 14 per cent to just 5 per cent. In the June quarter, 10890 homes costing less than Rs 25 lakh were sold, year-on-year sales growth of 32 per cent.
The incentives given by the government are attracting both buyers and developers to the affordable segment. Under the Pradhan Mantri Awas Yojana (PMAY), households with an annual income of up to Rs 18 lakh can avail Rs 2.3 lakh upfront subsidy for a home. Buyers are also eligible for income tax exemption on housing loans.
Poddar Housing focuses on the affordable segment and has around 1 crore sq ft of projects being launched in the Mumbai Metropolitan Region (MMR) and Pune between October and March next.
Moreover, urbanisation is an unstoppable trend in the Indian market. That creates demand for budget homes. So going forward too the affordable segment will continue to thrive.
Source Link- https://www.thehindubusinessline.com/