Realty Check | Day 12 | Sachin Kulkarni: Sustainable, multi-pronged strategy needed for Affordable Housing

22 Aug,2014

By Sachin Kulkarni
Managing Director, Vastushodh Projects

 

Homebuyers find themselves in a dilemma over when to buy their dream home. While favourable economic conditions lead to higher disposable incomes, they also lead to spiralling real estate prices, making it difficult for home buyers. On the other hand, during economic downturns, while real estate prices decline, people tend to adopt a more cautious approach to investing in properties.

 

Though 2013 was largely viewed as bad year for the real estate business due to the slowdown, there was and there will be always huge demand for affordable houses in India. In the Pune sector alone, there is a demand for 6 lakh such houses by the people who are earning between Rs 15,000 to 50,000 per month.

 

What the government needs to do to promote affordable homes?

There cannot be one single solution with the government for promoting affordable housing. It has to be a sustainable, multi-pronged strategy.

 

To begin with, the government needs to define affordable housing. There seems to be confusion between affordable housing and slum rehabilitation which are two entirely different things.

 

There are different solutions for metros, urban centres, district headquarters and growing towns to address this issue of housing. I think the government has to be open to new ideas, new technology, new partners and new ways of funding affordable housing in India!

 

5 things developers can do to make the houses affordable:

1. Plan and Construct smaller units. 1 BHK, 1 RK etc

2. Explore locations on city periphery

3. Get rid of unnecessary amenities and frills & fancy specifications

4. Create pressure on the Govt/PMC/ State to make sanctions easy & faster.

5. Adhere to the various policies introduced by Govt, for example: Accept Inclusive housing policy within PMC (20 % EWS, LIG). Construct & Provide the mandatory smaller units in townships (10% Smaller units)

 

Coordinated by Shobhana Nair

 

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