Housing for all, tax concessions to buyers and developers is changing the housing landscape with affordable homes getting into the driver’s seat, by Preeti Kulkarni
The average Indian’s biggest dream is to own a house and they would go through any extent to achieve it. Over the past two years, real estate builders, developers, and specialised lenders in the housing space have created an ecosystem which has resulted in this dream coming true for scores of Indians. However, increasing consumerism and rapid economic growth in the 2000s resulted in the size of homes getting bigger and bigger leading to affordability taking a backseat.
The slowdown in the real estate sector post the 2008 financial crisis is yet to fully settle and there are several instances of stalled projects from that period. Realising the mismatch between the need of the larger mass and the available inventory, the government announced the Housing for All by 2022 in June 2015. Ever since then the affordable housing segment is literally the talk of the town, with billboards hailing the virtues of upcoming residential projects splashed across cities.
Defining affordable housing
“We define affordable housing as units that are affordable by that section of the society whose income is below the median household income,” says Harshil Mehta, JMD and CEO, DHFL. However, affordability is a vague term and changes its meaning depending on who the buyer is. To make some meaningful headway, three factors were arrived at to define affordable housing—the size of the residential unit, the income level of the home buyer, and the price base on demand. This definition is mostly for buyers to benefit from the tax concessions allowed on loans under the affordable housing scheme. However, the overall rub off of affordable housing is being seen in the manner in which project sizes are getting realistic.
This story is from the October 2017 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 2017 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs
How Do You Define Happiness?
Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness
Avoid Crypto As It Is Highly Volatile
I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?
Invest Right, Don't Speculate
The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it
Here's How To Buy An ETF?
Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.
How Passive Funds Help Diversify
Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio
The Rise Of Passive Funds
The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms
