by Rohit Poddar, Director, Poddar Housing
After a tough phase, the Indian residential real estate sector has been showing signs of recovery as property registrations grew by 157% YoY compared to August 2020 with affordable housing being the most preferred. While this is a clear indication of the retrieval of residential real estate, it also highlights the factors that led to the growth of affordable and mid-income property registrations and sales in India in the last two quarters where there have been significant changes observed in the buying pattern.
The development and management of affordable housing has positioned homebuying within the confines of low-income families. Affordable housing developers can anchor a sizable number of state and central tax credit possibilities. Builders can equip themselves for government relief or subsidies in the construction of new, or rehabilitation of existing infrastructures.
Affordable housing as a sector has incessantly been on the Central government’s priority since the ‘Housing for All by 2022’ was announced in 2014. The investment of lakhs of crores of rupees into India’s infrastructure segment, with a cornerstone, to facilitate connectivity is boosting up affordable home buying. The issued debt financing for REITs and InvITs and the backdrop of the Development Financial Institution for supplementing funds for infrastructure and the real estate market is anticipated to supply a major uplift to the industry and help bring in more investments.
Many people have resorted to moving from the city to a suburb to find budget-friendly spacious houses and to gain more indoor and outdoor space attached to their property.Many are trying for the sight unseen. With congested cities, suburban areas and MMR regions are becoming quite popular for their availability of space, low traffic and wider roads under new development prospect. Additionally, millennials desire to buy single-family units, which might become an emerging trend in the real estate market.
Due to the covid-19 pandemic, the working professionals are working from home and this has led to a need generation of bigger spaces. Backed by this, there’s a huge increase in demand for residents moving into ready to move-in affordable units in suburban areas. Homebuyers are giving preference to townships with all inclusive of amenities. With more interests taking place inside the home, houses need to now have space for living, entertainment, career/job work, working out, school and more.
There is a drastic increase in diversity in the local areas. Millennials from various socio-economic backgrounds are looking for housing units to suit themselves according to their needs. Some look for affordable spaces to call their own, some for peace of mind or getaways from the urban hustle, the affordable housing sector is becoming the tree for all their nests.
