With the Government's keen interest in Housing for All, an affordable house is no longer a dream
It is everyone’s dream to build or buy a new house. It is however an expensive dream and many put their lifetime savings to realise this financial goal. With real estate prices only soaring year after year in most cities, buying a house of their own appears to be a distant dream for people who are in the lower income category.
Government of India has recognised that there is a huge need for housing in the lower income segment and intends to create affordable housing for all by 2022. Affordable housing is aimed at people within the earning bracket of Rs10,000 to Rs 25,000 per month and can afford to buy a home within the budget of Rs5 lakh to Rs25 lakh.
What is affordable housing?
- Targeted at lower income category
- People within the earning bracket of Rs10,000-25,000 per month
- Houses cost between Rs5 lakh andRs Rs25 lakh
- Located in suburbs, usually 50-100 km from the city
Booming Mumbai suburbs
- Mumbai government has promised 11 lakh affordable houses by 2022 in the Mumbai Metropolitan Region (MMR)
- A proposal for extending the Navi Mumbai metro rail to Kalyan has lead to surge in Kalyan-Dombivli stretch
- Demand in Vasai-Virar region to substantially increase from the current 2.76 lakh units to 4.72 lakh in 2021
- Availability of land parcels at low rates in Karjat-Kasara belt has lead to rise in LIG and MIG residential apartments
While buying a house in Mumbai in the range of Rs 5-25 lakh may seem unrealistic, many developers are moving to the suburbs and taking up affordable housing projects. Here are some booming suburbs:
Vasai-Virar: It is around 50 km north of Mumbai. As per a study by Knight Frank India, there are 2.40 lakh residential properties and 36,277 commercial properties here.
Raigad district: Karjat, Khapoli and Pali are part of the Mumbai Metropolitan Region (MMR). Availability of land at low rates has made it conducive for affordable housing.
Kalyan-Dombivli: The real estate sector has recently witnessed a boom and a proposal for extending the Navi Mumbai metro rail has fueled the growth for housing. Many SMEs and industries are mushrooming in Mumbai suburbs. Boisar town has more than 1,500 industrial units which provide employment opportunities for people. Kalyan-Dombivli twin city has a large industrial belt to its south-east from Kalyan to Badlapur. The Budget announcement on allowing 100 per cent deduction for profits to housing projects building homes up to 30 sq meters in the four metro cities and 60 sq meters in other cities is likely to spur supply of affordable homes. Government is also offering subsidies to first time buyers and women buyers. With better transportation facilities reducing travel time and realtors building quality homes, the demand for affordable housing is all set to grow in the coming years.