Affordable Housing: A glimmer of hope
After the introduction of Affordable Housing Schemes, Country witnessed some revival in real estate sector however Housing for all is still a dream only.
By: NehSrivastav, Under Secretary, Ministry of Home Affairs & President, Central Secretariat Services Officers Society
At the national level, the government estimated a shortage of millions of homes at the beginning of 2017 and it is also projected that the country’s total housing shortage till 2022 would be 30 Million. The tremendous difference between demand and supply in affordable housing area is pressurizing people to live in rental homes or informal settlements. If not dealt immediately, this can have larger grey impact on our economic growth.To successfully construct India’s Affordable housing, partnership between central ministries, state government, civic bodies, private sector and country’s financial institution is necessary.
PradhanMantriAwasYojana: In order to address the shortfall, the scheme envisages tackling the issues through four models: In situ Slum Redevelopment, Affordable Housing in Partnership and Subsidy for beneficiary-led individual house construction and Credit linked subsidy. In addition, it has suggested policy reforms to implementing agencies.
Foreign Direct Investment (FDI): Opening up foreign direct investment (FDI) for of townships, housing, built-up infrastructure and construction-development. However, not much traction has been seen in the Affordable Housing segment till date.
Ease of Doing Business (EOB): Several initiativeshave been taken to increase ease of doing business with main focus on obtaining construction permits in urban areas. Single Window clearance has been initiated through an integrated online portal in select cities.
RERA and GST:RERA and GST will have a long term transformative effect. RERA has broughttransparency, efficiency and accountability in real estate sector and it is acting as boon for Real Estate.
Land pooling policy (LPP): Land Pooling policy brought an opportunity for mid-level builder to create affordable housing for middle or lower income group people. If it is implemented in a consensus and time bound effective manner, it will prove to be panacea for housing sector.
“The unified ambition must be to enhance the efficiency of country’s affordable housing sector at minimal cost while maintaining basic amenities and safety standards. To bring affordable housing in the mainstream, government should act as a catalyst for development and ease investment process for both private and public.”