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Despite high urban land prices, affordable housing players are upbeat over the policy reforms and the sector getting ‘infrastructure’ status.
The prospects of affordable housing in Bengaluru, Hyderabad and Pune are bright with a few key players launching projects. “The current trend of limited new launches and muted price inflation will continue in 2018,” said Ram Walase, MD & CEO, VBHC.
“The end-user demand, especially in the affordable housing segment, will continue to be the bright spot, primarily driven by Pradhan Mantri Gramin Awaas Yojana (PMAY) subsidies and favourable government policies for the segment,” he said.
“We expect the year (2018) to start well in affordable housing. We see increased government promotion for the housing sector, and it is expected encourage both foreign and domestic investors,” he added.
Policy boost“Significant policy measures such as infrastructure status to the affordable housing sector, RERA, GST and the RBI bi-monthly polices have restructured the system and reinforced the investor trust by creating transparency and accountability in the market.”
According to Walase, it will take about 18-24 months for the industry to recover from the effects of inventory overhang and regulatory interventions. Yet, these disruptions are likely to drive the long-term metamorphosis of the sector.
Viswa Prathap Jesu, Senior Vice- President Marketing & Sales, Brigade Group said, “easing of regulatory norms and increasing the scope of the PMAY credit subsidy scheme, it makes a good case to launch affordable housing projects.”
Target 2022The public private partnerships (PPP) has created excitement, and promotes private investment in affordable housing and housing for all target by 2022, said Sonu Abhinandan, Head Quikr Homes.
Sharing the survey results conducted by Quikr Homes, Abhinandan said, “It indicates that 45 per cent of the respondents are planning to launch affordable housing project in near future and 34 per cent still prefer to launch housing project in mid-segment. Compared to affordable and mid-housing project, only 12 per cent developers prefer to launch luxury project of 3-4 BHK. Apart from these residential projects, 9 per cent builders are showing their interest towards commercial developments.”
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