Business-friendly strategy to create affordable housing
Cost-effective home is the prime problem in developing countries but India presents the remarkable case study. While constantly India is expanding population is the bedrock of the economic promise, also, it is the source of numerous issues including the residential deficit. The urban population of the country is expected to reach 600 million by the year 2030. There is a big existing as well as the future need for the affordable homes.
So far, the government attempts to breach the gap haven’t been pretty successful. In all the fairness, however, addressing the huge deficit of budget homes in India is the herculean task, which can’t be the sole responsibility of the government. The real option is to actually rope in private sector considering deficit in the segment, presently hovers between 18-20 million units.
The residential developers of the country have certainly woken up to the fact that the affordable housing is where greatest demand presently is, not only from the end-users but even from the investors. What they actually are doing about creating the need inventory, depending a lot on which city as well as in which region or area they operate in whether or not they have requisite the technical knowledge as well as bandwidth for housing.
Factors that will determine the success of the affordable housing
Certainly, the developers who actually have been concentrating the efforts mostly on cheaper outskirts of the cities will have knowledge as such regions majorly see demand for affordable housing. The developers have been concentrating more on the premium housing and middle income, having a greater challenge on the hands.
At the first place, they at times lack the expertise for the successful carrying out the budget residential projects. Such expertise encompasses the ability to balance the housing spaces with the great saturation of common facilities and amenities. Also, they do have a great working relationship with municipal authorities who actually handle the affordable housing to get the expedited clearances for the projects as well as access to land parcels incorrect locations.
Simply reinventing the mid-income resident into the budget housing can’t solve the problem in some of the cases as the project might be in the location which certainly commands higher land rates. This basically means that the buyer ends up paying the premium location rates which isn’t feasible for the budget housing. Some developers also simply don’t want to be known for the projects that of affordable housing as they have worked pretty hard to develop up a premium label for the brand.
Why slum rehabilitation may not answer to the affordable housing needs
Meanwhile, the slum rehabilitation or the SRA projects are extremely tedious as well as a complicated affair which is way beyond the scope of numerous players who aren’t used to the route of development. It basically involves obtaining the consent as well as the willingness of the present residents of such regions or areas and overcoming several hindrances from the local politicians who actually have their own interests in the unregulated residents like slums and tenements.