With a sharp drop in income, it is difficult for ordinary citizens to buy a home

- The government will have to move in the right direction to realize the Housing for All scheme

Corona's period saw an increase in sales of medium and premium dwellings after the initial downturn in 2020. Earlier stalled purchases may have led to higher sales growth at present, however, the share of affordable home sales of Rs 50 lakh or less is declining and in the second wave, the sales figures were quite weak. In the first six months of the current year, affordable housing accounted for 9 per cent of the total new launches in the country's seven major cities. In 2016, this share was around 50%. Affordable housing was attractive at the time because of the incentives provided to small home buyers and developers.

Compared to affordable homes, the share of premium accommodation in new launches was 5 per cent while the share of mid-range households was 4 per cent. Thus the need for affordable housing and premium housing is known to be viewed from a single perspective. It is a fact that demand for affordable housing is higher than premium housing in India. During the Corona period, many people in the country either lost their jobs or saw a decline in income. Most of those whose income has been affected belong to either low-income or middle-income categories. Sales of affordable housing have also declined significantly due to the loss of income. Of the estimated 2.50 lakh unsold dwellings in the country's seven metros in the June quarter, 9 per cent were affordable. It can also be said that the power to buy low-cost housing has declined due to the decline in income. New launches are seeing a decline in the attractiveness of affordable homes. Developers are not very enthusiastic about building such dwellings at the present stage when the cost of raw materials like cement, steel, sand does not make a big difference in each of them whether it is affordable or premium.

Builders do not understand the math of making low profits by spending high unless they are provided with incentives. On the one hand, when Prime Minister Narendra Modi talks of Housing for All by 202, the number of unsold flats is showing a contradictory picture, that is, there are houses to live in but no takers. It is a well-known fact that due to low income and high accommodation prices, accommodation is not available.

The government has come up with the Pradhan Mantri Awas Yojana to make the housing scheme a reality for everyone, but the scheme has also suffered during the Corona era. Developers, on the other hand, are reluctant to cut prices despite the stockpile, which makes sense in terms of affordable housing. Prices have been holding back in anticipation of rising property prices as the economy recovers. Today, the number of homeless people is high in various cities of the country due to rapid urbanization and migration from rural areas to urban areas. Given that land prices have skyrocketed in urban areas and it has become unaffordable for the common man to buy a house, various state and central governments have announced and are implementing a number of affordable housing schemes but due to lack of funds most of the schemes are currently slowing down. Has been stopped.

According to a recent report, institutional investment in the country's real estate sector is projected to grow by 3% to Rs 200 crore (પાંચ 5 billion) this year. Investors are currently taking advantage of lower interest rates in the Corona era to invest in properties.

Institutional investment in the real estate sector stood at ૮ 4.50 billion in 2020. In the first six months of 2021, the real estate sector saw an investment of 2.50 billion (Rs 31,150 crore). However, the biggest attraction for institutional investors has been in office space. Of the total investment in the first six months of the current year, 6 per cent was in office space, the report said. The industrial and warehousing space came in second with 8%, while only 4% of the total institutional investment remained in the housing segment.

The country's real estate market is building houses for the middle class and the rich, but despite the fact that homes for the poor are not considered in the Corona era, how successful is the government's announcement to provide affordable housing for all? It will be interesting to watch. By 2020, the country's estimated population of 200 million will be in cities, which will also see a huge increase in demand for affordable housing. Now that the Corona epidemic has adversely affected the sale of affordable housing and new construction after demonetisation, let us expect the government to move in the right direction to fulfill the Housing for All announcement.