Mumbai: The government’s Housing for All by 2022 initiative is likely to offer a business opportunity worth Rs.75,800 crore for the private sector in the affordable housing segment across the top seven cities in India, says a report prepared by global real estate firm Cushman & Wakefield and real estate industry body Confederation of Real Estate Developers’ Association of India (Credai).
The current demand for such houses across the National Capital Region, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata and Pune stands at 535,400 units and the price range is Rs.20 lakh to Rs.50 lakh, except in Mumbai where it is between Rs.50 lakh and Rs.70 lakh, says the report released on Monday.
The rising demand for affordable houses gives the private sector an opportunity to explore urban affordable housing through various models that are profitable to all the stakeholders, says the report. Besides, the government’s strong emphasis on the ‘Housing for All by 2022’ will give the much-need push, it says.
“Urban affordable housing has long been neglected in India due to various reasons such as high land prices, delays in getting approvals and low margins in the segment. Now with renewed focus from government, we expect this segment to gather momentum going forward,” said Sanjay Dutt, executive managing director, south Asia, Cushman & Wakefield, in a statement.
In the April-June quarter, developers launched 7,000 affordable units, a three-fold jump from the previous quarter. Of the total affordable houses launched, around 60% of them were in the National Capital Region, comprising Delhi, Gurgaon, Noida and Faridabad.
The report said that the government needs to promote private sector involvement to bridge the current deficit of low-cost housing in urban areas. It said investment in the sector needs to be incentivized by making land available, reduction in raw material prices and additional floor space index.
“The affordable housing segment that is now backed by a strong mandate of the central government currently witnesses a demand-supply mismatch and it is imperative that public-private-partnerships be given an impetus to achieve desired scale,” said Getamber Anand, president, Credai-National.