Affordable housing has become a mainstay in the product portfolios of a lot of real estate developers. This category of houses is growing in importance in the Indian context quarter after quarter. There is ample data that suggest that homebuyers are increasingly opting for this type of home for the kind of merit they carry. Even the developers have come of age in their offerings of affordable homes and are offering the very best in terms of features and safety in their affordable category of homes. Here are the top 5 reasons why affordable housing is becoming important:
1 Value-for-money Aspect: This type of residential unit has the best value-for-money proposition, which makes many end-use buyers choose such a project or such a property. Even those who have one home and want to invest in real estate as an asset find that it is best to invest in affordable homes as they offer remarkable returns with their value-for-money tag. When investors want to sell off this type of property, they are likely to find buyers much more quickly as there are always people who are willing to buy this class of houses.
2 Central Government Sops: The government has, from time to time, come up with sops to promote this category of houses as it tries to help a larger section of the population to fulfil their dream of owning a house. In the July 2019 Budget, the government provided an additional income tax (IT) deduction of up to Rs 1.5 lakh for home loans to buy affordable houses priced up to Rs 45 lakh. Then, in the Budget for 2022, the government extended the provision for additional tax deduction till 31 March 2022. All the measures make an affordable home even more attractive.
3 State Government Support: There are several states in India that have come up with their own measures to boost affordable housing. They have put a ceiling on the prices of the properties on a per square foot basis. This means that these houses are cheaper than other houses of other categories. The state governments also provide several benefits and tax exemptions to the real estate developers for their affordable housing projects.
4 Rent Assurance: There is far greater assurance of letting out such a house since the rents of such houses are also quite affordable, so there are far more takers of such homes. Even in times of recession in the economy, there are greater chances of finding tenants for this class of homes than bigger and luxury homes. Thus, from the point of view of getting assured returns or assured rents, this is a better bet than the other classes of homes.
Affordable housing has been at the centre of the government’s Pradhan Mantri Awas Yojana-Urban (PMAY-U) program, which aims to provide shelter to many citizens of the country. The program aims to complete the construction of 20 million houses across the country by
31 March 2022. The program covers 4,331 towns and cities. Taking PMAY-U to the next level is leading real estate developer Migsun Group. The Group is committed to providing the best residential properties at affordable prices to the country’s citizens. It has been building future-proof properties in Delhi NCR like Raj Nagar Ext, Noida Ext and Greater Noida. Projects of Migsun Group like Migsun Vilaasa and Migsun Roof see heightened demand.
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