Definition: Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income.
Description: Though different countries have different definitions for affordable housing, but it is largely the same, i.e. affordable housing should address the housing needs of the lower or middle income households. Affordable housing becomes a key issue especially in developing nations where a majority of the population isn't able to buy houses at the market price.
Disposable income of the people remains the primary factor in determining the affordability. As a result, it becomes the increased responsibility of the government to cater to the rising demand for affordable housing. The Government of India has taken various measures to meet the increased demand for affordable housing along with some developers and stressing on public-private partnerships (PPP) for development of these units.
Amit Khurana on why Dolat Capital upgraded chemicals sector, how to play housing themeAmit Khurana from Dolat Capital explains that although India's market needs some normalization in the short term, it remains a top emerging market for the long-term. He discusses promising sectors like chemicals and affordable housing finance, assesses Aditya Birla Group's capital practices, and highlights growth potential in banks and consumption sectors over different time horizons.
PMAY Urban 2.0 fund boost set to accelerate affordable housingPMAY-U is among the major flagship programs being implemented by the government to provide all-weather pucca houses to all eligible beneficiaries in the urban areas. Under PMAY-U, more than 11.8 million homes have been sanctioned while nearly 9 million houses have already been constructed and delivered to the beneficiaries.
CVC pips EQT, set to buy Aavas for Rs 7k croreCVC and EQT were the final contenders after Bain Capital decided to take a backseat. ET had been first to report on July 28 that EQT, CVC and Bain were the last in the fray, as private equity investors look to consolidate their position in the fast-growing sector. Kedaara and Partners together hold 26.47% of Aavas, with the former owning slightly more than the latter. Their exit will trigger an open offer for the acquisition of an additional 26% from public shareholders and result in a change in control.
House hunting a hard chase for middle-class nowBengaluru's property prices have surged, making it difficult for middle-class buyers to afford homes. The average cost of a 3 BHK apartment now ranges from ₹1.2 crore to ₹1.4 crore. This increase has led to inventory backlogs and market slowdowns, as potential buyers opt for rentals or cheaper outskirts properties.
Affordable houses contribute only 15% to the total residential launchesIn the April-June period, high-end housing units priced above one crore rupees saw significant sales and launches, with 43% of new launches and 38% of sales falling into this category, according to PropTiger.com. However, affordable housing's share decreased due to rising construction and land costs. The proportion of units priced up to Rs 45 lakh dropped to 15% of new launches.
Delhi NCR embraces luxury housing, affordable housing sales dip: AnarockFrom the epicenter of unscrupulous real estate activities to one of the country's most vibrant realty markets, the National Capital Region has come a long way. The region has seen several notable trend reversals in the past five years. Among them - housing demand is now heavily tilted toward the luxury housing segment.
WSB Real Estate raises Rs 700 cr for mid-income, affordable housing investmentsWSB Real Estate Partners has raised over Rs 700 crore via its real estate debt fund to invest in mid-income and affordable housing projects in tier I and select tier II Indian cities. This marks the first close of its fourth SEBI registered Category II Alternative Investment Fund (AIF), which aims for a Rs 1,000 crore corpus, expandable by another Rs 1,000 crore through a green shoe option.
Budget proposal to promote investments, create jobs: Industry playersIndustry players believe the budget will drive private investments, creating jobs and helping achieve "Viksit Bharat" by 2047. Virendra D. Mhaiskar and Kavita Shirvaikar highlight the boost to infrastructure with Rs 11.11 lakh crore allocated. Policies supporting recycling, affordable housing, critical mineral imports, and domestic solar equipment are praised.
LTCG hike, indexation changes not done for revenue considerations, but to simplify & make sure all asset classes are treated similarly: FMFinance Minister Nirmala Sitharaman explained that the new 12.5% long-term capital gains tax would cost less without indexation. She highlighted middle-class benefits, including increased standard deductions and subsidies on student loans and housing. She denied political favoritism in budget allocations and affirmed the government’s commitment to anti-corruption measures. Sitharaman urged people to consult the CBDT’s clarifications.
Focus on affordable housing, infrastructure bodes well for realty sectorIndustry experts anticipate a significant boost to India's real estate sector due to the government's focus on affordable housing, infrastructure development, and urban planning initiatives. Policies under consideration include rental housing regulations, digitisation of land records, and transit-oriented development in cities with populations exceeding 3 million.