Affordable housing records amazing upswing

With government doling out housing subsidies for the economically weaker sections and increased focus of the developers on the segment, the contribution of affordable houses to total residential sales has gone up to 21% from just 8 percent three years ago. Real Estate consultancy Liases Foras claimed in its newest findings, adding that affordable housing has become the fastest growing segment in Indian realty with maximum new launches as well. Three years back, builders were dedicating supply to the premium segment (above ₹50 lakh) but currently the market has rationalized and a major part of the new supply is directed at the affordable segment, founder and MD of Liases Foras, Pankaj Kapoor said.

He said adding that between the first quarter of 2016 and 2019, when affordable segment almost tripled in sales, the share of luxury homes with a tag of over ₹2 crore went down from 14% to just 5 percent. In the June quarter, 10,890 homes costing less than ₹25 lakh were sold, thereby, recording year-on-year sales growth of 32%. He further added that incentives given by the government are attracting both buyers and developers to the affordable segment. Under the PM Awas Yojna (PMAY), households with an annual income of up to ₹18 lakh can avail ₹2.3 lakh upfront subsidy for a home. Buyers are also eligible for income tax exemption on housing loans. Moreover, developers get 100% deduction for profits in affordable housing project for flats up to 30 sq.m in four metros cities and 60 sq.m in other cities completed in three years.