PM Modi affordable housing

PM Modi’s affordable housing push worth Rs 84 lakh Cr to create 20 Lakhs Job p.a Courtesy: IndiaTV News

Prime Minister Narendra Modi’s massive push for affordable housing for the country’s billion plus population will unleash a staggering Rs 84 lakh crore in investments over the next seven years, a recent report has said.

The question that arises then is on the prospects of generating buyers for the ‘affordable’ 60 million houses. What makes the situation even more precarious is that home loans still remain out of reach for the poor and the growth in buying capacity of urban Indians continues to be low.

The biggest hurdle for the central government in this ambitious program, are perhaps the state governments as most taxes and laws related to land come under the state government.

The Centre has written to all the states to waive off the Stamp Duty varying between 4 per cent to 8 per cent on affordable homes.

In June 2015, PM Modi rolled out the “Housing for All” program aimed at constructing 20 million homes across the nation, and later home loans were revised and waived under the program in December’2015.

But it was in 2015 only, when more than 2 lakh homes were just piled up in Delhi-NCR (largest real estate sector of India). Residential buildings were supplied in excessive amount in the market.

“customers just don’t want to buy,” said Ashwinder Singh, chief executive of residential services at Jones Lang LaSalle Inc, in an interview with Livemint in 2015.

Customer behaviour has changed in the last few years, said Singh, with buyers having lost confidence in a developer’s ability to construct and deliver a project on time.

Will Indian metro’s skyline have affordable apartments besides, world’s costliest home or not, shall be answered soon.

The question that arises then is on the prospects of generating buyers for the ‘affordable’ 60 million houses. What makes the situation even more precarious is that home loans still remain out of reach for the poor and the growth in buying capacity of urban Indians continues to be low.

The biggest hurdle for the central government in this ambitious program, are perhaps the state governments as most taxes and laws related to land come under the state government.

The Centre has written to all the states to waive off the Stamp Duty varying between 4 per cent to 8 per cent on affordable homes.

In June 2015, PM Modi rolled out the “Housing for All” program aimed at constructing 20 million homes across the nation, and later home loans were revised and waived under the program in December’2015.

But it was in 2015 only, when more than 2 lakh homes were just piled up in Delhi-NCR (largest real estate sector of India). Residential buildings were supplied in excessive amount in the market.

“customers just don’t want to buy,” said Ashwinder Singh, chief executive of residential services at Jones Lang LaSalle Inc, in an interview with Livemint in 2015.

Customer behaviour has changed in the last few years, said Singh, with buyers having lost confidence in a developer’s ability to construct and deliver a project on time.

Will Indian metro’s skyline have affordable apartments besides, world’s costliest home or not, shall be answered soon. 

Source: IndiaTV News