Near Future is All About Affordable Housing

Yes! The good news for all the home/property hunters!

Affordable housing has long been a subjective term for all the buyers and the builders across the real estate market till today. Potential buyers perceived affordability of property as something that fits into their budget, while the term’s meaning varied from a builder’s perspective.

However, according to the ET Realty’s recently published newsletter, the government plans to provide affordable housing options for all with well supported infrastructure and connectivity. Yet, it is expected that the government will take proactive steps in enabling this provision than becoming a provider. And this is one of the reasons we can see infrastructure developments across the states and cities.

We believe, having more supply would bring in this objective of providing better housing and affordable housing options for all through enhanced connectivity and at the end, a place to live with good connectivity is often, the preferred choice of the buyers. 

Read more about the ET Realty Newsletter, published on 14th February 2016, as under:

Dear readers,

It is a welcome statement from Union Minister when he talks about the government planning to provide houses priced below Rs 5 lakh. Does the country need affordable and low-cost housing? Yes. But, this needs to be supported with good infrastructure and connectivity.

It’s a noble cause, but the government’s role is essentially expected to be of an enabler and not of a provider. The government does know that very well and is acting upon it. That’s why we have been hearing about the push on infrastructure and improvement in connectivity.

The best way to make housing affordable is to increase its supply and improve connectivity to satellite towns that can accommodate mass housing projects.

For example, the state government of Maharashtra has already drawn a plan to develop 100 sq-km city with private participation in Uran, situated around 50 km east of Mumbai. However, given the current economic growth centers in Mumbai, it’s unlikely that people would move to this new city unless a speedy mass-transit option exists.

Therefore, the key is infrastructure and better commuting options. If people in US are commuting from New Jersey all the way to Manhattan, a distance of over 70 kms; Mumbai has more options within a periphery of this distance that can be used for mass housing, provided the connectivity is good. And this can be a case for any urban and economic growth center across the country.

So rather than working on a plan to offer homes priced below a certain price tag, the government needs to accelerate its speed at which infrastructure is being improved and affordability can be taken care of through higher supply.

While the government is taking steps to improve crumbling infrastructure in the country’s financial capital, the speed at which it is being done has to be enhanced. Several big ticket projects including coastal road and trans-harbour link will connect and offer more options for people to live out of choice, not out compulsion.

Thrust can be on empowering or enabling people with good infrastructure and not just building a roof on their head.