Affordable housing is a segment where the demand will always be on the upsurge, says Parveen Jain, President, NAREDCO and CMD, Tulip Infratech.
Is the 'Infrastructure' status for the affordable housing segment adequate to spur investments by the private sector? What outcomes do you anticipate through this government emphasis?
The 'Infrastructure' status to the affordable housing segment seems adequate to spur investments by the private sector with favourable outcomes as it opens up a plethora of avenues for the benefit of affordable housing. Higher investment in affordable housing shall be facilitated and infrastructure status shall enable the affordable housing sector to avail the associated benefits. Imparting infrastructure status to affordable housing will provide 'priority lending' status to the segment and provide cheaper sources of finance. Lending rates may be reduced. Carpet area of 30 to 60 sq m (excluding public areas such as lifts, corridors) would be counted in lieu of the built-up area. The duration of completion of the project has been raised to five years in lieu of three years earlier.
Is it a feasible proposition now for infrastructure majors to get into the affordable\housing sector? And vice-versa, is it lucrative for real estate majors to move into the affordable housing?
As answered earlier, the gamut of infrastructure status provides multifarious avenues and incentives, making it a feasible proposition now for infrastructure majors to get into the affordable housing sector. The affordable housing segment can change the fate of the real estate sector in the country as it may give a surge to the real estate sector in these trying times when the sector is witnessing ups and downs in other segments of housing. In today's scenario, when the demand and sales of other segments of housing have become sporadic, the demand for affordable housing is uniform and ever-increasing because of the teeming millions looking for a habitat which they can afford. Also, it seems to be lucrative enough for real estate majors as the demand for affordable housing is consistently increasing and ever-lasting.
How will the infra tag accorded to affordable housing spur the concept of 'Housing for all'? How will this impact realty pricing in the current fiscal and over the next four years?
The infrastructure tag for affordable housing has the mettle to spur the concept of 'Housing for all' as it caters well to the unlimited demand of housing for the masses and is in consonance with the government's mission. Affordable housing is one segment where the demand will always be on the upsurge, taking into consideration the need of housing for the surging population. The infrastructure tag provides a plethora of avenues and incentives to delve into affordable housing plans, making it a realistic proposition and making the way easier to achieve the mission. It is too early to comment on realty pricing over the next four years; things should start falling in place at first.