Unlocking the Potential of Real Estate:
A Comprehensive Guide to Property Investment India’s real estate market faces a pressing challenge: providing affordable housing to its burgeoning urban population. As cities expand and the need for accessible living spaces grows, policymakers and investors must explore innovative solutions. In this article, we delve into the urgency of affordable housing in India and analyze key initiatives aimed at bridging the housing gap.
The Housing Gap and Its Implications
India’s urban population is projected to increase significantly by 2036, with approximately 43.2% of the population residing in cities. However, the housing deficit remains a critical issue. A Grant Thornton report estimated a housing shortage of 19 million units in 2015, a number expected to double by 2030 if no substantial intervention occurs. Most of this deficit affects economically weaker sections (EWS) and low-income groups (LIG).
Challenges Faced by Affordable Housing
Despite the real estate industry’s swift recovery after pandemic disruptions, the affordable housing segment faced challenges:
Supply Decline: The proportion of new residential units launched in the affordable segment (up to Rs 45 lakhs) declined from over 50% in 2019 to 31% in 2022.
Demand Shift: Consumer sentiment shifted, with fewer property seekers expressing interest in homes priced under Rs 40 lakhs.
Unsold Inventory: The top seven cities experienced a surplus of unsold affordable housing units, comprising over 27% of the total unsold inventory.
Key Initiatives: Credit Linked Subsidy Scheme (CLSS) and SWAMIH Fund
Credit Linked Subsidy Scheme (CLSS):
Launched under the Pradhan Mantri Awas Yojana (PMAY), CLSS provides interest subsidies on home loans for EWS, LIG, and middle-income groups.
It aims to make housing more affordable by reducing the effective interest rate for eligible beneficiaries.
SWAMIH Fund (Special Window for Affordable and Mid-Income Housing):
Created to revive stalled affordable and mid-income housing projects.
The fund provides last-mile financing to complete projects, benefiting both homebuyers and developers.
Prospects and Challenges
Innovations: Sustainable practices, green buildings, and technology adoption can enhance affordability.
Speedy Implementation: Streamlining approvals and project execution is crucial.
Public-Private Partnerships: Collaborations can accelerate affordable housing initiatives.
Conclusion
Affordable housing isn’t just about bricks and mortar; it’s about fulfilling dreams and ensuring inclusive growth. By leveraging initiatives like CLSS and SWAMIH, India can unlock the potential of its real estate market and provide accessible housing for all
