Connect with us

Residential

Housing for All: How an Infrastructure Tag for Affordable Housing will Help Realise it

Published

on

Housing for All: How an Infrastructure Tag for Affordable Housing will Help Realise it
PM Modi congratulates historic budget by FM and his team and says ‘visionary’ budget will help the entire nation.

The 1990s was a seminal decade in India. Liberalisation and privatisation ushered in by then Finance Minister Dr Manmohan Singh in the game-changing 1994-95 budget induced competition and growth in various domains such as banking, retail, etc. The housing sector too saw a sea change with the private developers taking over and the government’s role becoming limited. Needless to add, the housing market went through the roof in no time. While incomes of many people increased in tandem, a vast majority also found themselves priced out at the same time.

To cater to the latter segment, who belong to the median or lower income groups and constitute a sizeable proportion of India’s burgeoning urban population, affordable housing schemes emerged in the suburbs of metros. To underpin the momentum, both central and state governments rushed in with policy support to encourage private players to invest in the affordable housing segment. Those ranged from waiving off service taxes, land use charges and exempting external development charges (EDC) and internal development charges (IDC) to subsidised loans. From being a provider of affordable housing, the government’s role changed to that of a facilitator.

But the yawning demand supply gap persisted. To tame it, in 2015 the Modi government launched the flagship programme called “Housing for All by 2022,” with an aim of constructing a staggering 2 crore houses by 2022. To achieve it, however, it realised more needed to be done. Hence, it went a step further with the landmark declaration in the just-concluded 2017-18 budget, in line with a long-standing demand of real estate developers – infrastructure status to the affordable housing segment.

With it, the central government hopes to inch closer to its target of helping all Indians realise their dream of owning a home by 2022. Here’s a dekko at its sweeping regulations meant to help buyers:

  • First and foremost, the infrastructure tag would make it mandatory for banks to lend to developers of affordable projects at cheaper interest rates (currently developers borrow at steep rates of 18 to 24 percent). This would encourage more builders, including top tier ones, to foray into the segment. Supply would be boosted and more importantly prices of housing units would come down, thereby enabling more low-income group people to buy homes. This will complement the earlier announcement of 4 and 3 percent interest subsidy to buyers for a housing loan of up to Rs 9 lakh and Rs 12 lakh for a unit of up to 800 square metres.

 

  • Besides making homes cheaper, laws also intend to make them spacious. In the 2016-17 budget, houses with built-up area, which includes the common space for lifts and corridors in buildings, of 30 square metre and 60 square metre were given 100% tax deduction on profits. In this fiscal’s budget, those numbers have been made applicable to the carpet-area, which includes the wall-to-wall area. This would in effect up the qualifying size for affordable houses. At present, the 30 square metre measurement is applicable for affordable housing projects located in the four metros and the 60 square metre is applicable to those within 25 kilometre from the municipal limits of the four metros.

 

Increasing the size of houses, would also bring more projects under the ambit of affordable housing thus making more units available for home seekers.

The budget has made legislations to benefit builders, with profit featuring at the top of their agenda, too. A roundup of the sops given to constructors follows:

  • In addition to access to reduced borrowing rates, the deadline to complete a project would now be extended to five years from the current three. This would go a long way in easing pressure on builders as a lot of time is soaked up in procuring requisite approvals. Once they overshoot the deadline, however, all benefits will be denied to them.
  • A year’s income tax relief has also been provided to builders as there is little income from rent on completed units that are not sold.

Finance Minister Arun Jaitley has also announced a slew of other measures along with the aforementioned ones to achieve the goal of housing for all. For instance, he has proposed halving the income tax rate to 5% for those making up to Rs.5 lakh per annum. This move would likely spur demand for affordable homes. He has also announced pumping Rs.23, 000 crore into Pradhan Mantri Awas Yojana to build one crore rural houses by 2019. Further, he announced National Housing Bank (NHB) will refinance individual housing loans to the tune of Rs.20, 000 crore in 2017-18.

Unlike the direct government involvement in nations like Hong Kong and Singapore, where public housing has been a roaring success, the Modi government has decided to incentivise the private sector to fillip the affordable housing sector. If it pans out as per plan, the government would have a major feat to boast about.

Source: finance.

Residential

NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

Published

on

By

NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

Continue Reading

Residential

A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

Published

on

By

A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

Continue Reading

Residential

Rajasthan Government May Hike The Affordable Housing Prices

Published

on

By

Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

Continue Reading

Trending