Affordable Housing: Unmatched opportunity at both ends

Urbanization and the mass development of individuals to urban areas.
September 5, 2020

Affordable Housing : Unmatched opportunity at both ends

From Government subsidies to transparent deals, the affordable sector in reality business is perhaps the best opportunity both for the developers and the end buyers.

India is witnessing accelerating urbanization over the years and now the increase in population is more in urban areas than in rural areas. With the price skyrocketing in the reality sector and demand soaring high as every family dreams to have their own house in this era of productive capitalism, the government by introducing its affordable housing scheme under Pradhan Mantri Awas Yojna (PMAY) has made  sure that the dream comes true. The features of Pradhan Mantri Awas Yojana are that the government will provide an interest subsidy on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme (CLSS) from the start of a loan.

According to estimates, around 600 million people are expected to make urban India their home by 2031, a whopping 59 per cent growth over 2011.  As an increasing proportion of India’s population starts participating in its growth story, it brings with it mounting pressure on the existing infrastructure, which needs to at least keep pace with the growing demand, if not be ahead of the curve.

Now, it is the Role of developer to create a checklist and work on the same to create a win-win situation both for developer and the end consumer:

  • Location : Affordable housing, to be truly viable must have a good location and shall be well connected or near to the economic corridor of the city so that the people can easily travel from home to office on a daily basis.
  • Strong Value proposition : First and foremost, the affordable housing customer seeks a strong value proposition.  Limited income and difficulty in access to credit mean that a home will most likely comprise the most important asset/biggest investment in his/her lifetime, and will form the starting point for the long-term welfare of his/her family.
  • Good Infrastructure and Facilities: A well-constructed home in a planned development with adequate sanitation, security, privacy, play areas for children, and uninterrupted water & electricity supply holds significant aspirational value for this customer, whose current living conditions are likely to be compromised.
  • Near to School, hospitals, parks and Super market: When it comes to aspirations and dreams the common man always aspires to get the best out the deal as family is spending their hard earned money in the housing need, it becomes extremely essential that school for kids and best health facilities are nearer to the affordable housing community.
  • Easy Loan and Timely Delivery : Collaboration with the reputed banks and multiple payment options shall be made accessible to the end customers who probably will be the first time buyers and paper work shall also be made easy for them with the help of a professional team. As the consumers put their hard earned money in the affordable housing scheme it shall be made sure that timely delivery must be the most important factor in the affordable housing scheme to grow in India.

Lastly, be it any sector or any product, what matters is the value for money. Just like smart phones provide an umbrella of features and these days the prices are also very competitive, similarly we at Aangan Kutir make sure that end buyer gets best of both the worlds be it best facilities, good location, easy documentation, CCTV Camera, Green Space and  easy payment options, affordable price and that will indeed make a win-win situation both for developer and buyer.

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