Affordable Homes Offer $11.8 Bn Opportunity for Builders: C&W
Aug 25, 2015
Source : NDTV Profit


New Delhi: Affordable home segment presents a business opportunity worth $11.8 billion for developers across seven major cities of the country, according to property consultant Cushman & Wakefield.

Cushman & Wakefield (C&W) has pegged the demand for affordable housing at 5,35,400 units across Delhi-NCR, Mumbai (MMR), Bengaluru, Chennai, Hyderabad, Kolkata and Pune.

"Affordable housing presents a $11.8 billion opportunity in India across major seven cities, backed by demand in these cities," the report said.

The consultant expects that strong demand pipeline in the top seven cities would drive private sector participation in development of affordable homes.

"Affordable housing demand across seven cities is around 5,35,400 units. Keeping in mind the high demand in this segment, it is time that developers change their perception about affordable housing development, since its success lies in the scale of operations, compared to the middle-income group (MIG) and high-income group (HIG) which have higher margins that drive profits," C&W said.

C&W executive managing director South Asia Sanjay Dutt said urban affordable housing has long been neglected in India due to various reasons such as high land prices, delays in getting approvals and low margins in the segment.

"Now with renewed focus from government, we expect this segment to gather momentum going forward," he added.

To fulfill the need for low-cost housing, the consultant said that the government needs to promote private sector involvement that would play a significant role in bridging the current deficit of low-cost housing in urban areas.

"Till now, private players have shied away from this segment, due to low margins. Incentivizing the sector by making land available, reducing raw material prices, providing additional Floor Space Index (FSI) for such developments etc. are bound to give a thrust to development of low cost housing units," the statement said.

Latest Realty News

Aug 24, 2015
NASHIK: The Confederation of Real Estate Developers' Association of India (CREDAI), Nashik will seek the government to reduce taxes and speed up the building plan approval and environment clearance process to make housing affordable, in the backdrop of RBI governor Raghuram Rajan advising builders to reduce rates of unsold flats the real estate sector.
Aug 22, 2015
Panaji: Pointing out that the government collected approximately 216 crore as infrastructure tax from 2009 to 2015, CREDAI - Goa questioned the government's lack of interest in providing necessary infrastructure like road, water, sewerage and electricity connections to housing and commercial projects. The real estate developer's body also urged the government to implement Regional Plan 2021 in order to avoid confusion in the minds of consumers and real estate developers.
Aug 22, 2015
NEW DELHI: A day after RBI governor Raghuram Rajan advised builders stuck with unsold inventories to cut rates, realtors' body CREDAI on Friday said there is no scope to reduce housing prices and demanded that interest rates on home loans as well as taxes should be reduced to boost demand.
Aug 21, 2015
Mumbai: Piling inventory levels of real estate players in the country on Thursday brought the controversial 'teaser loans' back into focus, with State Bank of India asking the Reserve Bank of India to allow lenders to sell loans below the base rates.
Aug 21, 2015
DEHRADUN: An estimated 1,500 hectares of prime land housing tea gardens - many of which were planted by the British in the city - is lying neglected with the tea plantations there barely able to produce tea of substantial quantity.
Aug 21, 2015
BELAGAVI: Belagavi unit of confederation of real estate developers association of India (CREDAI) will be hosting 'Statecon-2015', an annual state level convention of CREDAI, Karnataka this time in city on September 2nd and 3rd. Union urban development minister Venkaiah Naidu will inaugurate the event.
Aug 20, 2015
New Delhi: Over 55,000 home buyers will now get possession of their flats in Noida as the government issued the final notification demarcating the Eco Sensitive Zone (ESZ) around Okhla bird sanctuary, realtors' apex body CREDAI said on Wednesday.
Aug 20, 2015
Reserve Bank Governor Raghuram Rajan on Thursday made a case for reduction in property prices given the high inventory of unsold flats across the country.
Aug 20, 2015
New Delhi: Average apartment sizes fell by up to 26 per cent in last five years across seven major cities in the country as developers are making smaller flats to boost their sales in a sluggish housing market, according to global property consultant JLL India.
Aug 20, 2015
BHUBANESWAR: The long-awaited bill to amend the Odisha Apartment Ownership Act, 1982, is scheduled to come up in the assembly during the monsoon session, which started on Tuesday.

Latest Realty News Of State

Realty Talk's