by Rohit Poddar, MD, Poddar Housing and Development
The past few months have been professed to be the months of recovery post the second wave, especially for the housing sector. The housing sector pulled up its socks to shrink down the impact and made its voice heard. The rebelling concern regarding the spread of the covid pandemic drove the industry to accept the new normal and accept digitization. People all over the world are adopting the new normal and are working from anywhere. This has resulted in an extravagant demand for affordable houses and workspaces. Several developers are now outwardly inclining their apartment configurations and supply with the budget ranges influenced by the demand. In the call of the global pandemic, people have now come to the realization of the importance of owning a property. The flickering economy has resulted in many hardships for salaried employees, as they strived to pay their rents, due to frequent pay cuts, employee lay-offs, etc.
With the rising urban population, housing prices are picking up with it. Developers and architects are working round the clock, investing and inventing new ways of providing a solution to the upcoming challenges. This is largely for maximum unit count paired with minimum budget keeping in mind the technological and architectural advancements. The development and management of affordable housing can put homebuying within the confines of low-income families. Affordable housing developers can anchor a sizeable number of state and central tax credit possibilities. Builders can equip for government relief or subsidies in the construction of new, or rehabilitation of existing infrastructures.
Another end-user segment from which an enormous demand is anticipated is potential home-buyers who favour moving to sustainable housing societies, where their entire family requirements are met. Coping up with the current scenarios, such fenced communities offer better social distancing facilities when compared to apartments. Millennials between 28 and 45 of age are participating majorly in the demands of affordable housing in 2021. 2020 already observed major enquiries and bookings after the lockdown from this segment, and most of them are spotted purchasing their dream bouses this year.
The government’s ‘Housing for all’ mission which aims to achieve its goal by 2022, has amplified this segment. Numerous initiatives such as the Pradhan Mantri Awas Yojna (PMAY) and the GST rate reduction for the affordable housing segment are helping the economically fragile sections get affordable housing.
In the country’s most expensive property market- the Mumbai Metropolitan Region, nearly 54% of the housing supply is priced below Rs 80 lakh. Mumbai Metropolitan Region’s western and central peripheral pockets have witnessed more than 90% of the launches within the affordable and mid-segment priced less than Rs 80 lakhs. The shift emphasizes a major fluctuation in Mumbai's real estate market, which was so far influenced by luxury housing. Because of the development and extension of city boundaries from Greater Mumbai to the outskirts, more than 1.8 lakh housing units have been put to sea in the western and central peripheral regions since 2013.
The fear or uncertainties and job security has influenced investments in realty industry, and people are investing in affordable housing to secure and safeguard their future. The affordable housing segment, survived the onslaught of the pandemic merely because it serves the pocket-friendly price limits which have maximum demand.
The market is encouraging and favorable, the government and developers incentives will definitely help the sector reap rich returns as the sector is receiving high on the increased demand in the post-Covid-19 situation. The market for affordable housing is sturdy, and in the future, more breakthroughs are expected. People have comprehended the need of owning a home, and this feeling is going to plough on.