Affordable houses to provide Rs5,00,000 cr business opportunity

Affordable houses to provide Rs5,00,000 cr business opportunity

New Delhi: The affordable housing segment will offer business opportunities worth over 5,00,000 crore as India requires more than ten million houses to be built by 2013-14.

According to a report prepared by property consultant Knight Frank on Public-Private-Partnership model on housing in India, an estimated 11.84 million dwelling units are required to be built in India by the end of 2013-14 across all income segments in 37 cities.

The need from the economically weaker section (EWS), lower income group (LIG) and lower mid income group (MIG) is nearly 90% of the total housing requirement, it said.

“The cumulative task of delivering over 10 million units in affordable housing category in top 37 cities of the country quantifies to a business opportunity in excess of Rs5,00,000 crore," the report, prepared for realty body NAREDCO, said.

Commenting on the potential of the segment, the report said though the margins realised from affordable homes are comparatively lesser, the segment offers an opportunity to exploit volume of transactions to derive higher profits.

The consultant pointed out government alone would not be able to meet the pan-India housing requirement, “thus venturing into a joint model with the government can be a practical solution".

The synergies could be utilised towards achieving the central government’s objective of ‘housing for all’ and making India a slum-free nation, the report said.