Affordable housing business: a comeback story

Affordable is defined as used in accordance with the socio-economic strata of different people of different income levels and so on. In India, the term applies most targeted housing community created for EWS (economically disadvantaged segment), so that they, like the middle class, you can also benefit from home ownership and financial security.

Although this part of the house is not getting enough momentum early years, the incumbent BJP government has made it clear that it intends to see the bottom of the housing project targeting and the thickest part of the income pyramid significantly increased.

This means that we are considering at the time of an interesting new phase of India, affordable housing is becoming the first choice, rather than the "poor cousin" status. There are many new government can do to improve the industry, including the promotion of redevelopment of old buildings, and provide high-quality infrastructure to suburban population can reside, while continuing to work place within the city. The key factor here is to ease the commute time, and allow access to the vast land outside the city.

An interesting and important facts related to the Indian real estate is affordable housing projects have the fastest absorption rate. In other words, create more affordable housing is justified, not only from a social and economic point, but in the real estate business. Demand in the unit area is amazing, who has focused on from the outset, the development of affordable housing (or who are entering now this section) may years manufacturing and marketing of their projects.

While affordable housing has not seen the kind of growth, India needs in this area, it is actually for real estate developers in the most sustainable business model. Who specialize in this part of the housing developers completely insulated from the recession or slowdown caused by market sentiment. In fact, the real affordable housing - projects, including units priced below Rs. 200,000 rupees - is completely recession proof, because the demand is not only stable, but in fact increasing.

Because of this dynamic, the direct effect of affordable housing, now is the best asset class property investors. There is a huge supply of middle-income and high-end properties in all cities in India, but the apparent lack of willingness of buyers to pay higher interest rates in the living space. Thus, we see more and more investors focus on budget homes.

Clearly, affordable housing is a vertical business has withstood the test of time, when the larger format housing has failed to attract buyers and investors. Today, previously only focused on middle-income and high-end residential projects large developers who are seriously looking to build their own affordable housing exists, too. Their reason is that affordable housing part of the high volume / low margin is slowing expensive houses reliable hedge against the market, but also because the budget is a new means of well-known housing developers to use its brand value.

source : WEB