The Rising Challenges in Affordable Housing and Property in Noida Demand
Affordable housing was the buzz word in the real estate sector in 2014. A major chunk of demand and supply generated in the sector last year belonged to the affordable housing segment. Some of the major cities of the nation like Delhi, Noida, Gurgaon, Bhiwadi, and Mumbai saw a plethora of high-quality affordable housing projects taking birth. It was a dream come true for Lakhs of families who otherwise couldn’t afford a home till now and were residing in a rented abode. All was hunky dory, and affordable housing was being seen as the segment which will wage a fight back and bring the bleeding real estate sector back on track. At the same time, many families also began exploring Commercial property in Noida, fueling growth in that sector as well. But things have taken a U-turn, and definitely not for the better.
The segment has now long been plagued by low margins and high costs. The Union Budget that was tabled on 28th February was expected to provide a much-needed breather to the segment and the sector as a whole but failed miserably in doing so. The Narendra Modi-led government was expected to provide incentives and iron out the difficulties troubling the sector but the budget proved to be a disappointment. Many hoped that a reputed real estate company would lead the charge in making affordable housing more accessible, but their efforts were thwarted by policy challenges.
The sector had communicated a list of its expectations from the budget. They included infrastructure status for affordable housing, approval for the introduction of subvention schemes in the affordable housing segment to boost affordability, lower interest rates below 7.5%, tax rebates on raw materials, additional exemption of income tax on home loans, reduction in service tax, reduction in home loans interest rates, crystal clear roadmap for its housing for all by 2022 scheme, and many other reasonable insights and observations. But most of the demands were not heeded in the budget.
If one sees the larger picture, the budget is pro-growth and extensively beneficial for the people of India. The benefits of the budget will surely be reaped in the long run by every Indian. But the real estate sector, particularly affordable housing, has been downright ignored. Real estate company in Delhi NCR players were expecting industry-specific guidelines, boosters, and incentives, especially for the affordable housing segment, but nothing significant materialized. Infrastructure status to real estate, so that long-term funding could be facilitated, was also expected. Property in Noida and similar locations continues to attract interest, but the larger vision of affordable housing remains unclear.
As a result, the affordable housing segment is expected to take a back seat. The far-fetched dream of India’s common man to have a sturdy roof over his head might not come anytime soon. It’s high time the government laid out specific ground rules and built a clear foundation for its affordable housing and housing for all by 2022 schemes. It is very much capable of fulfilling the common man’s dream, and millions of people, including those looking for property in Noida and elsewhere, are counting on them for the same.
