According to a recent report on Housing, India is facing shortage of 24.71 million homes for 66.30 million households and this can reach to 30 million till year 2020. Also, the biggest shortage has been noticed in EWS (88%) category followed by LIG (11%) and MIG. For HIG, shortage is almost nil because options are available everywhere.
I see a big opportunity for developers to provide budget homes for EWS, LIG and MIG category where demand is quite high and supply is almost negligible. Affordable houses have always been in demand because many families have been living in congested areas on high rent and in the lack of basic amenities. The huge housing requirement for EWS and LIG segment can be fulfilled by developers in alliance with the state authority and central government.
Land scarcity in main city or region is one of the biggest hurdles in building affordable homes and land in the main city is very costly. In this case, developers need to think for locations within 30-40 kms, available at a low cost and offering good public transport to all major workplaces of main city. At these places, low cost or budget homes can be built that will vary from 300 sq ft to 400 sq ft (carpet area) for EWS, 400 to 650 sq ft for LIG and 650 to 1,000 sq ft for MIG category. Depending on the land area, balanced no of homes, (to maintain population density and resource) will surely solve the shortage in coming future. With dwelling units, basic infrastructure like power, water, sanitation and green belt and play areas can resolve overall requirements.
Concerned authorities have been offering homes for EWS, LIG, MIG and HIG category in Noida, Ghaziabad and Greater Noida but seeing the huge gap in demand and supply, developers must think on PPP (Public Private Partnership) model to develop residential hub for people. Since Noida has shown green signal to Mixed land use policy, it could be another landmark for the real estate industry when people will get all facilities of daily life under the same premises.
In fact, right now the real estate industry is facing problem of vacant inventories across India and the major reason is; developers have prepared homes for middle upper and upper class family which has crossed supply limit and at the same time demand from the category has gone down. Also, existing potential investors are also out due to the uncertain market scenario.
Hence, this is the right time to move on towards homes for EWS and LIG category that is still receiving support of Govt. policies where opportunities are immense.
Author’s Note: Pawan Jasuja is a seasoned real estate and IT professional with more than 14 years of successful experience in direct and indirect sales of a range of Products & Services. He is also actively involved in the Consultant, brokerage and development of residential and commercial real estate.
Disclaimer: The views expressed in the article are solely of the author and may not represent 99acres.com's opinions on the subject. 99acres.com does not take responsibility for any actions taken based on the information shared by the author.