Economically and socially driven markets like Noida and Gurugram have benefited with the launch of affordable housing projects. These new-format housing projects have not only changed market dynamics, but also consumer behavior, and helped in improving city infrastructure.
For years, the NCR has been a market catering to all kinds of real estate buying options. In the recent past, though, the share of affordable housing has significantly increased in the region with Gurugram and Noida leading in their.
While this segment is evolving, it is positively affecting the whole market. “Buoyed by the government’s push for affordable housing, there has been a significant rise in its development in the overall NCR market. The new supply in the affordable segment has kept in sync with the rising consumer demand,” Prashant Thakur, head of research at ANAROCK Property Consultants said.
Recently, RBI revised housing loan limit for eligibility in the priority sector lending for metros, from Rs 28 lakh to Rs 35 lakh. RBI also raised the carpet area, from 120 sq m to 160 sq m, for MIG-I category, and from 150 sq m to 200 sq m, for MIG-II category.
The impact is not just on launches, but also on sales. “The purchase trends also paint a similar picture with numbers suggesting that out of the total units sold in the NCR in the first quarter of 2018, the maximum absorption (50%) happened in the affordable category,” Thakur of ANAROCK said. The impact is not just visible on transactions side – there is clearly an impact on the region.
Changing consumer behaviour: Because of a high number of launches, consumers have enough options. At the same time, development firms too are keen to sell. Consider the example of one Aman Pandey, a New Delhibased professional, who was looking for a 3BHK in Gurugram. His developer has both premium and affordable housing on offer and when Pandey approached him, the builder directed Pandey to an apartment in his affordable project. “Here, I have got a flat within my budget,” Pandey said, who was looking for a flat in the affordable range.
Delivery of projects: Though not quantified yet, it is likely that all new launches after November 2016 will see timely completion. “This would mean that developers registering their projects with the real estate regulator in the region will deliver on time. This would add to the overall inventory and options available to homebuyers,” Pradeep Mishra, a New Delhi-based consultant, said. “With RERA in place, it is very unlikely that developers would risk delaying their projects,” Thakur of ANAROCK says.
Improved infrastructure: Increase in the affordable housing segment is likely to give a push to infrastructure development of the region. “The most important factor which has given a fillip to the sector is the grant of infrastructure status, which has created huge demand for this segment in the market,” Gaurav Mittal, MD of CHD Developers Ltd, said.
Many affordable housing projects across key micro markets are occupied either by tenants or actual owners. This trend is also fast changing the newer regions into well-developed residential hubs that support the commercial districts in Delhi, Gurugram, and Noida with housing. These markets have good surrounding infrastructure for their residents.
Strong rental market: The emergence of affordable housing has created strong pockets of rental destinations. These offer enough options to professionals and those coming to the city for employment. Gurugram has several such pockets.
Source : TOI