Housing for all by 2022 – Demand-Supply Gap Shrinking

  •  Affordable housing schemes are on a growth curve in 2017
  • Huge demand in housing segments is being met with increasing supply
    Present Scenario
  • In housing sector, massive demand and massive unsold residential inventory is co-existing
  • Reason: This is the result of pricing mismatch

Governments Efforts under the ‘Housing for All by 2022’

  • The government is collaborating with private builders and developers under a public-private partnership (PPP) model to make ‘Housing for All by 2022’

Other efforts by the government

  • The government has provided 39 per cent higher allocations for affordable housing development vis-à-vis FY17 under the Pradhan Mantri Awas Yojana (PMAY)
  • It has also extended the Credit Linked Subsidy Scheme to loans of value up to Rs 12 lakh
  • Government policies like the Real Estate Regulatory Authority (RERA) have infused fresh buyer confidence into the realty sector
  • The most important decision by government is that it a has granted infrastructure status to affordable housing

Observation of ICRA

  • According to the ICRA, the affordable housing segment in India is set to grow at a faster pace than the rest of the real estate sector
  • Also, it will be the key growth driver for the Indian mortgage finance market
  • Positive things that are coming in the Affordable Housing sector
  • The segment has lost its “down market” label and become a serious and respectable business sector for developers
  • It is a given that the demand-supply gap is huge, but the fact is that it is narrowing visibly for the first time in several decades.
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