Central government has announced various policies to boost affordable housing space in indian market of which new public private partnership policy for affordable housing needs a special mention. The said policy allows extending central assistance of uptoRs. 2.50 lakh per each house to be built by private investments in affordable housing projects on government lands in urban areas.
The policy gives eight PPP ( public private partnership) options for private sector to invest in affordable housing segment. This policy seeks to assign risks among the government, developers and financial institutions, to those who can manage them the best besides leveraging underutilized and un- utilized private and public lands towards meeting the housing for all target by 2022.
The two PPP models for private investments in affordable housing on private lands include extending central assistance of about Rs.2.50 lakh per each house as interest subsidy on bank loans as upfront payment under the credit linked subsidy component (CLSS) component of Pradhan mantriawasyojna (urban) under the second option, central assistance of Rs. 1.50 lakh per each house to be built on private lands would be provided, in case the beneficiaries do not intend to take bank loans.
Public Private Partnership
The policy gives eight PPP ( public private partnership) options for private sector to invest in affordable housing segment. This policy seeks to assign risks among the government, developers and financial institutions, to those who can manage them the best besides leveraging underutilized and un- utilized private and public lands towards meeting the housing for all target by 2022.
Investment in Affordable Housing
The two PPP models for private investments in affordable housing on private lands include extending central assistance of about Rs.2.50 lakh per each house as interest subsidy on bank loans as upfront payment under the credit linked subsidy component (CLSS) component of Pradhan mantriawasyojna (urban) under the second option, central assistance of Rs. 1.50 lakh per each house to be built on private lands would be provided, in case the beneficiaries do not intend to take bank loans.
Promoting Affordable Housing
The eight PPP options, including six for promoting affordable housing with private investments using government lands have been evolved after extensive consultations with states, promoter bodies and other stakeholders
Mumbai had the trouble for the builders for obtaining Occupation certificates, it is noticed that builders like Hiranandani are also facing such troubles. Many housing projects are having unsold inventories because of unavailability of occupancy certificate.
Occupation Certificate Related Issues
Affordability of House
Mumbai is ranking 7th among the top cities of the world for luxury housing demand. Houses being sold in the area of South Mumbai, which includes Napean Street, Malabar Hills, Lower Parel, Prabha Devi are in range of a million dollar to upto ten million dollar.
But the real demand comes from the suburban Mumbai, which includes areas of peninsular Mumbai areas like Powai, Andheri, Juhu, Borivali, Kandivali and areas of Navi Mumbai like Vashi, Kharghar, Sea wood has considerable demand and are quite affordable to the high income middle class hoi polloi. Price map can be seen hereunder.
Tata’s have developed very affordable homes in Boisar. However, this place is more than hundred kilometers from Mumbai South.
Mushrooming population and nuclear families
India has lower urbanisaton rate in comparison to other market. There is tendencies for nuclear families which is further escalating up demand for housing for their primary need.
Prompt evolution of a nuclear families and swelling population of India is significant elements of demand pull in real estate. Tier I and II cities like Bangalore, Mumbai, Lucknow, Chennai, Pune, Hyderabad and Delhi have become hubs for education and commerce. People migrate to these cities practically every day in search of better opportunities. Growing population in any place fabricates a need for living space. Further associated features such as a rise in nuclear families and divorce rates have also led to increased demand for property in cities.
