The affordable housing segment has assumed importance in prevailing pandemic situation.
The affordable housing segment has as sinned tremendous importance in the real estate sector In the recent couple of years. With the Prime Minister unveiling the ambitious Housing for All scheme way back in 2016, the affordable segment became more Important. Even many branded developers started participating in affordable segment. The affordable housing segment plays a major role in the real estate industry as it addresses the price bracket which has the maximum demand for homes.
Talking about the importance of afford-able housing segment, Niranian Hiranandani, president NABEOCO, avers, ‘Housing is a basic need for one and all, and it is the one segment in which demand is al-ways greater than supply. In the past and currently we have seen that living in owned homes is a better alternative than in rented accommodation. This is one reason which should result in an increased demand for housing once the pandemic situation settles a bit more.’
Since affordable segment is price sensitive therefore its full recovery depends upon several factors including how end users find themselves into a positive where they can not worry about their jobs situation and easily borrow home loans to buy their dream homes.
Importance of owning a home
‘This pandemic made everyone realise the importance of their um home. Millennials acknowledge the fact that own housing is of utmost important for they are working from home. Many first nine buyers who have faced challenges related to housing in the pandemic times would now focus to buy a house near their workplace this would result in traction in not just affordable housing but other segments as well,’ Hiranandani avers.
Covid 19 has proven the importance of home ownership, as against any other asset, to every individual regardless of their socio-economic background. The emotional practical, and financial rationale to own a home Is completely in favour of homebuyers.
Mohit Arora CEO, ATS Homekraft, says, ‘Work from home, online classes, the need for social distancing and most aspects of daily life confined within properties, have enhanced the emotional and practical needs of home buying and most of these measures will be the new normal. Housing affordability in India is at an all-time high due to lowest home loan rates in a decade, steady rise in per capita income levels and stagnant or weak price growth of residential properties in recent years. All of the above, aided by pent up demand and an increase in household savings, has led to a rebound in housing markets across geographies in the last few months and we have empirical evidence that this will continue. Improvements in affordability, and the heightened need for safety and emotional well being will add an exponential number of people who will be able to afford new homes and increasingly want high quality, environmentally sustainable homes.”
While homebuyers including millennials are very happy buying under- construction homes from quality brands like ours, many other developers have seen a demand surge only for their completed projects.
Ths call of the hour
Sanjeev Chandiramani, chief operating officer, Ruparel Realty, says, ‘The pandemic induced lockdown invoked a sense of realisation amongst people on buying a home rather than renting one. Adding to this, the work from home culture brought in a wave of interest from homebuyers belonging to the mid income group, who now prefer to have dedicated spaces for their home office. With compact 2-BHK configurations, affordable homes are more functional, provide modern amenities and better utility of space. This has also attracted a lot of nuclear families who want to move into such homes along with their children”.
Pradeep Aggarwal, chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development, says, “Fortunately, this time, we all recognise the seriousness and aftereffects of Covid which is why we will overcome it believing that just like the last time housing sector will emerge as a performer. Especially, afford-able segment will see more demand coming from migrated population and people living on rent. Own home gives a sense of safety and security and people who suffer during pandemic and lockdown would definitely opt for affordable homes“
The Affordable housing segment plays a major role in the real estate industry as it addresses the price bracket which has the maximum demand for homes.
The government’s pro-supply and pro demand policies have contributed to the resilience and growth of affordable housing despite pandemic.
These include continuation of lowest interest rates on home loans, interest subsidy to homebuyers under PMAY and extension of tax benefits.
Further, the end-users dominating the market, are driving affordable housing market of lower ticket size. As new trends are emerging, the realty market has evolved and due to various factors like WFH culture and more, the youth is showing interest in buying homes.
Millennial homebuyers, who favour rental rather than self owned homes have started looking for freedom from a lifelong rental trap. Millennials feel more responsible for their future and families and choose affordable homes as their first homes due to budget limitations.