Where Does India Stand in The World of Affordable Housing Currently?

user Admin

  • 4th Jan 2022
  • 1160
  • 0
Where Does India Stand in The World of Affordable Housing Currently?

India is in the middle of a worrying affordable housing crisis, according to this article. Modern Indian cities house an average of 58 people per acre, enough space to provide each citizen with 245 square feet of living space, yet more than half the population lives in slums and shanties that offer an abysmal 10-15 square feet per person. Moving into a low-income housing complex isn't much better though as residents are forced to compromise on quality for cost or can't afford anything at

What is affordable housing?

Someone living on a budget can purchase an affordable home in the DLF Capital Greens at Dhawanpuri in Noida, Delhi NCR. The state of where India stands with regard to affordable housing is said to be a billion dollar question. Housing affordability is largely driven by rent prices, household size and income levels.

What is the definition of affordable housing in India?

In metro cities, when the price of a home is INR 45 lakh or lesser and the carpet area of the home is 60 sq meter or lesser, then this particular housing unit falls under the category of affordable housing in India.

How is housing affordable in India?

India's growing economy is yet another major contributor to the affordability of housing. The population's demand for homes as well as the affordability of building allows for many profits in the sector. However, this change has come with a growing government presence and thus creating new regulations are making it harder to start-up businesses in the industry.

What is PMAY (Pradhan Mantri Awas Yojana)?

The PMAY (Pradhan Mantri Awas Yojana) is an initiative of the Government of India which aims at providing affordable housing to the urban poor by the year 2022. The scheme was first launched on 1 June 2015 and is available for those with low and average incomes. Interest rates start as low as 6.50% p.a., and finance terms can be up to 20 years with the last date for applying still set deadline of March 31, 2022.

How expensive is real estate in India right now?

In today's time, what is most affordable? Well, real estate in economies such as India tend to be quite expensive relative to many economies. In fact, the cost of homes has increased greatly over the last 20 years in countries like India where they are still struggling to provide affordable housing options to millions and millions of citizens. This can often be attributed to the rise and regulations supporting subsidized government employees or dependents, who have pushed up home prices by creating speculative demand all around their demands for houses in their own areas.

Who are the people who live in these houses?

India is one of the most densely populated countries. This increase in population has caused a significant rise in homelessness. According to the 2017 census, 86 million people live on less than Rs 3000/month ($50), which equates to approximately 575 rupees—the cost of a single beef kebab. These are close at home households belonging to all sections of society, such as casual workers, agrarian laborers, fisherfolk and informal sector workers, who fall squarely outside the spectrum of urban living. As these poverty-stricken tenants struggle in India's overcrowded cities unable to procure a decent place of their own because they cannot afford market rates, more so given stringent building codes and regulations, the majority choose low-cost vertical slums

What are some options that low income families need to take advantage of to obtain affordable housing and affordable real estate?

Elitists say that the lowest income families should not be able to obtain affordable housing. Luckily, there are some options that low income families need to take advantage of such as public or subsidized affordable housing or just renting a home in a less expensive community. They also have access to government and non-profit programs that can provide them with rentals for low income families.

Conclusion

Many countries across the world are being challenged by the extremely high cost of housing. The problem becomes more worrisome when you consider the fact that increasing rent rates in major cities make it increasingly difficult for low-income households to live decently and are turning middle class pioneer types into long time renters. One possible solution to the problem is to make all city lands or land banks statewide or federal property for anyone who can pay the price a reasonable and marketable value. After all, building costs have been steadily decreasing in the last years and land can be easily exchanged for various buildings within relatively short time. It is surely possible for someone to make a successful commercial building on city land, with the only condition being that they are located in high traffic areas, which are also regulated by zoning laws.



Written by

Admin
Read more


Add a comment

94qhf

Read Next

Join the 99sqft.com
Real Estate blog.

Discover the trends and reports that shape the dynamic Indian real estate industry.