Why affordable homes will help real estate growth

The housing market in India is going through a rough time. There are just no profits to be had in this sector. Sales have been down for the longest time and those involved in the sector have been worried about how the industry has been evolving over the last few years and have expressed their helplessness over the path it has taken.

The biggest concern has been the price rise. Day in day out the realty prices are rising. One can see how this can be a problem for many people. The per capita income of the country is pretty low. So expecting the normal salaried class to pump money into the real estate sector which is well out of their reach is not something that is practical.

The builders for their part are maintaining that they can't bring the prices down. They maintain that the cost of construction and land prices are going up so they can't bring the prices down. This has led to an impasse and the industry is just not willing to budge.

Under these circumstances a price correction might be around the corner if you are into property search. There is another factor that might get you a home if you are on a budget. The government is pushing for affordable homes. It's like everyone has woken up to the fact that there is a demand and are figuring out a way to address the demand.

There is a case to be made for an affordable home. If you are on a property search chances are that you will wind up looking for something that is on the more affordable side if you are in the normal salaried side of things. Most of the bigger cities in the country have shown sales in the under INR 50 lakhs range. So this shows that there is scope for affordable homes in the country.

Now the government is very keen to ensure that all of the people of the country especially rhe ones who come from the lower income part of the spectrum can own a property. This is by no means an easy task considering the way the properties are being priced in the tier 1 and 2 cities across the country. But the government of the land wants this for the citizens and is doing what it can to ensure that this section of the society gets a roof over its head.

The biggest concern here would be the participation of the developers. They would ideally prefer projects which would give them more returns and are focused on the middle income and luxury segments. This is where they tend to make a profit. But the government has ensured that they are left high and dry. Infrastructure status has been awarded to the affordable housing market. This will give the necessary impetus for growth in this sector. Builders will have easy access to loans and other things which are needed to get affordable projects up and running.