The very basic requirement of any individual is to have their own home to live. A home is a dream for any person and it takes a lot of concern when buying a home. Buying a home is not an easy task. You need to consider some of the very basic requirements and also various parameters of buying a home. It is in this regard the government has come up with some of the vital changes in the norms of buying homes and also some fruitful changes in the lending sector.
According to the Prime Minister Narendra Modi, "the current Union government is planning to give homes to all the people and by the year 2022 they plan to provide residence to every citizen of India". It is for this reason, the real estate developer are also contributing in the Pradhan Mantri Awaas yojana (PMAY) and they are providing it at an affordable rate to the citizens of India. As a result, in the last financial year and also the coming FY, there is steep downfall in the rate to buy luxury homes in Delhi, Mumbai, Bangalore and many other major cities by the individuals.
On the other hand there is a steep growth in the medium and low investment sector to buy the affordable apartments. The current government is also offering subsidy to the MIG who have loans amounting up to Rs. 12 lacs. After the demonetization period, the business involving the luxury homes has gone to a back foot. According to the recent laws, cash transaction is kept on hold for buying the homes and as a result of this the builder and buyers both are facing some difficulty in buying homes. As a result of this step of the government, the real estate developer who was previously much interested in creating luxury homes has now moved to the affordable sectors and is developing homes for the MIG
The current scenario and the statistics reports reveals that right now there is a shortage of 60 million homes of which 20 million is in the urban area and 40 million is in the rural area. This figure is set to rise up to 100 million by the year 2022 and 70 percent of the shortage will be seen in the affordable home sector as predicted by the experts. There is always a very high demand in getting affordable housing in real estate in India and the shortage in this sector is very much prevalent. The private developers thus are now focusing in the affordable sector of real estate in India so as to reach the customer base easily.
As the finance minister has announced a law for granting the infrastructure status to the housing sector and it has also relaxed the norms for the developer, there is also a visible change among the plans of the developers and they are now much more interested in creating affordable housing for the people. The real estate developers in India can now use the capital easily and thus it is attracting more number of investor in this sector for creating affordable housing for the buyers.