The Secret of Making Housing More Affordable

Decent affordable housing is fundamental to health and well-being of people and to smooth the functioning of economics. Yet in India and around the world, in developing and advanced economics alike, cities are struggling to meet that need.

A blueprint for addressing the global affordable housing challenge by McKinsey Global Institute (MGI), defines the affordability gap as the difference between the cost of an acceptable standard housing unit (which varies with location) and what households can afford to pay using no more than 30% of their income.

The Secret of Making Housing More Affordable

The Secret of Making Housing More Affordable

However, four approaches used in concert can help reduce the cost of affordable housing by 20-50% and substantially narrow the affordability gap. These are largely market oriented solutions- lowering cost of land, constructions, operations and maintenance and financing- could make housing affordable for median earning households. [Read more…]

Are ‘Affordable Homes’ Economically Viable For Developers?

Talk about housing or property to anyone in India and the first thing that comes to their mind is affordability. Millions of homebuyers want to buy affordable homes but there is hardly anything out there. There is such a tremendous demand the supply is short.Though the government is doing great in the field of affordable housing for common man, are these projects viable for the developers?

Are ‘Affordable Homes’ Economically Viable For Developers?

Are ‘Affordable Homes’ Economically Viable For Developers?

The reason is simple for the above query, developers prefer to invest in mid-section and premium housing as rising material cost, labor and financing cost make affordable housing unaffordable. Making matters worse is that developers build affordable housing but the homebuyers shy away from investing. [Read more…]

Union Budget 2016: Focus on Affordable Housing for the Common Man

The Union Budget 2016 was unveiled by Finance Minister Arun Jaitley on Feb 29, 2016. The minister announced nine pillars of his budget- Agriculture, Education, Financial Sector Reforms, Ease of Doing Business, Tax Reforms, Skills and Job Creation, Development of Social Sector including healthcare, Rural Sector and Infrastructure. This budget majorly focuses the poor and the urban populace of the country. To make urban living easier for the lower middle class, the budget has brought several reforms to boost affordable housing in India.

Union Budget 2016 Focus on Affordable Housing for the Common Man

Union Budget 2016 Focus on Affordable Housing for the Common Man

Here are a few important points of budget 2016 for the real estate sector:

No Dividend Distribution Tax (DDT) on REITs

The Real Estate Investment Trusts (REITs) have been a hot topic in Union Budget since 2014. It only got approval after much debate in 2015. The main impediment in the way of REITs was the imposition of DDT because of which developers were averse about raising funds for their projects through REITs. But now that the DDT on REIT has been done away with, builders can find more affordable ways of financing their projects. Investors will also be confident about putting their money in the real estate sector. [Read more…]