Embrace low cost techniques for affordable housing: ASSOCHAM
Dec 01, 2013
Source : The Economics Time


MUMBAI: A top industry body Saturday underlined the need for developing and embracing low cost technologies to cater to the growing demand for affordable housing, especially for the lower and middle income groups in the country.

India is currently facing a shortage of around 18.78 million homes and the main reason behind falling sales is the mismatch between the price range of the housing offered and the type and costs of units demanded, Associated Chambers of Commerce and Industry ( ASSOCHAM) President Rana Kapoor said.

Kapoor said that the National Housing Board figures indicate that 10.55 million homes are required for the economically weaker sections (EWS) and 7.41 million for the lower income groups (LIG).

It is further estimated that another 15 million households are situated in "unacceptably congested conditions" with the current demands being in urban and semi-urban areas, Kapoor said.

"Presently, builders are mostly offering premium homes, whereas the demand is higher for affordable housing in the Rs.500,000- Rs.2.50 million segment," Kapoor pointed out.

In order to overcome this mismatch, Kapoor reiterated the realty industry's demand to accord "infrastructure status" to affordable housing which will make the low-cost housing segment more affordable and it will also be eligible for various incentives.

He urged state governments to adopt a proactive role in creating affordable housing and work on the public private partnership model with realtors to develop such projects.

Besides, lending institutions must develop customised lending models taking into consideration buyers requirements and the Reserve Bank of India (RBI) should bring in policy changes for accommodating the demand for loans in the affordable housing category.

Kapoor urged builders to use low cost technology to help ease the supply crunch and create adequate affordable housing.

He referred to how IIT Madras recently constructed a two-storey building using cost effective glass fibre reinforced gymsum panels.

Latest Realty News

Building on the ancillaries business
Nov 29, 2013
MUMBAI: The rapid growth in the housing sector over the past two decades has catalysed the growth of allied segments such as paints, ceramics, electricals and sanitary fittings. They are expected to continue with their momentum in the years to come.
Milestone Capital plans to raise Rs 500 crore real estate fund in January
Nov 29, 2013
MUMBAI/BANGALORE: Private equity firm Milestone Capital Advisors is planning to raise a Rs 500-crore real estate fund, which will be launched in January and will have a greenshoe option of additional Rs 250 crore.
Large loans on the rise in banks’ home portfolio
Nov 29, 2013
MUMBAI: Banks have seen a rise in the proportion of home loans above Rs 30 lakh in the past two years, reflecting the sharp increase in home prices over the past few years.
Lodha group buys Canadian high commission’s building in London for over Rs 3,120 crore
Nov 29, 2013
MUMBAI: Mumbai-based realty major Lodha Group has bought the Canadian high commission's building in central London for over Rs 3,120 crore (£306 million) signalling the group's ambitious overseas plans.
Listed players on shaky foundations
Nov 28, 2013
MUMBAI: The real estate sector saw phenomenal growth in the last two decades, as the market went from primarily Government-sponsored housing to large private townships.
Still waiting for that big boom
Nov 28, 2013
MUMBAI: For all the changes that the sector has seen over the last two decades, buying or building a house still remains out of reach for a majority of the population. Not that renting one is any easier.
BMC wants evidence to register complaints about illegal buildings
Nov 28, 2013
MUMBAI: If you want to complain to the BMC about illegal constructions, you’ll now have to submit evidence too.
PCMC doubles property tax for illegal buildings
Nov 28, 2013
PUNE: Owners of unauthorized constructions in Pimpri Chinchwad will have to pay double theproperty tax. The civic body will soon start issuing tax bills for 2012-13 and for 2013-14.
Tax benefits of taking a home loan
Nov 28, 2013
MUMBAI: Interest paid on home loan is allowed as deduction u/s 24(b) of the Income Tax Act while calculating income from house property. If the house is self occupied, the maximum amount of deduction is Rs 1,50,000. However, if the property is rented out, total interest paid on the home loan is allowed as deduction without any limit. Deduction for interest component is allowed only from the financial year in which the possession of the house property has been obtained. Interest paid for the fina
Non-consenting members in a minority cannot halt redevelopment of housing society
Nov 28, 2013
MUMBAI: In a landmark order, the Bombay High Court ruled that non-consenting members who are in a minority cannot stop redevelopment and are bound by the agreement executed between society and developer.

Latest Realty News Of State

Realty Talk's