With an emerging real estate market, India witnessed drastic urbanization transformation and growth in recent years. As a result, the country will see a massive spike in urban residential complexes in the coming years.
Moreover, this growing urbanization becomes challenging in other divisions, like pollution, infrastructure, population, shortage of land, and much more. In fact, housing is one of the greatest problems we face today due to a big gap between supply and demand in the real estate sector. Obviously not everybody can afford luxury residences.
Hence, it is crucial to meet the needs of the low-income group living in urban cities in India. For middle-class people finding reasonable housing solutions with a touch of luxury is more than enough. Knowing the highest share of India’s population is a middle-class group, affordable houses can sell more than anything.
Parameters Of Decent Housing Projects For Leading Builders in Chennai
A different perspective on the "Housing for All" initiative is essential to solving the housing problem in the lap of luxury. Affordable residences have the highest demand. In order to discover the extent of demand, builders who attempted affordable residential construction as an experiment now hold long-term business strategies in this division. Thus, constructors contribute their level best to start the ventures that cater to this requirement.
To meet the housing shortage and demand of prospective clients, affordable housing with a healthy lifestyle has become a need of the hour for many property developers in Chennai. So, there are a few main parameters that builders pay attention to during the onset of residential construction projects:
- A monthly household income of potential clients.
- The ability to afford a specific home by prospects.
- The size of the house.
- Ease access to basic amenities.
- The residential area must be situated close to the workplace, services, and community facilities.
- Cost-efficiency in terms of maintenance.
Only after contemplating and meeting these parameters, builders and developers in Chennai can provide the right residential solution to the people. Developers today are coming up with the units according to the demand. As a result, supply will be in sync with the demand in urban areas.
Affordable Rental Housing Complexes
Another great initiative taken by the government of India in the wake of the Covid-19 pandemic is the Affordable Rental Housing Complexes (ARHC). Due to this scheme, urban migrants working in the industries, manufacturing, and service sectors will benefit significantly. They will get a house to reside nearby their workplace in non-formal urban sectors and industrial. e affordable rental housing to such low-income class workers.
Industrial workers, hospitality sector workers, laborers, street vendors, trade associations, long term tourists, students, educational or health institutions are the key beneficiaries of these housings.
Besides, developers from all across the states in India will be proposed to build such projects and promote private partnerships. The scheme will not solely regularise the rental housing market across the urban residential area, albeit it will add another asset class that builders will acknowledge at large. No doubt, the low rental and ease of living in urban areas is a great move to offer citizens convenience at reasonable rates.
Better and Cheaper Finances
The National Housing Bank suggested lately that the capital adequacy ratio measures of housing finance corporations be raised to 15%. The banks are looking forward to the implementation of this proposal by March 2022. Therefore, affordable residential construction projects can see a positive change.
The adequacy ratio for these finance companies currently stands at 12 percent. It will boost by 1 percent by the coming 3 years. This financing initiative slightly may impact liquidity in the short period. However, it is supposed to offer financial security to housing finance companies, which is necessary to create an affordable housing ecosystem in the long run. Hence, for property developers in Chennai affordable residences have got an edge over luxury apartments.
Final Thoughts
The rapid increase in population and urbanizations along with people's interest in living a comfortable life urged builders and developers in Chennai to focus on building affordable housing societies. There is definitely a trend for affordable housing in India over luxury apartments.
Thus, the developer's interest, financial stability, and rental housing schemes - all promote the affordable housing complex in the nation. Additionally, the government's 'Housing for All' move combined with the supportive policy framework for reasonable housing options gives a ray of hope for the affordable residential real estate market. After all, governmental support is necessary to encourage developers to build affordable residences. Ultimately, there can be no lack of residential areas in urban cities.