With population explosions taking place in our country, there is a definite increase in the demand for housing. With the rising income levels of the middle and upper middle class, there has been an increase in the kind of housing demands. But nevertheless, it is always seen that, Indians like to cut back on what ever they can, making choices and decisions on affordability.
With the rise in the number of nuclear families in India, the real estate industry has some serious working to do since there is a gap of 24.7 million houses in this segment which needs to be addressed, keeping in mind the biggest challenge of rapid urbanization. Most nuclear families that would preferably opt for a midsize apartment of around 700-1000 sq ft. Going by the average industry figures, the price of an affordable house may go up to Rs 20 Lakh
Affordable housing basically means, providing the required amenities to people which includes cost effective construction techniques, fittings and fixtures etc. . Availing a loan for these middle income group may not be very feasible, so the price has to be really reasonable.
One should choose their property very carefully and not get in to the words of the developer and agree to whatever price they quote, since most developers may have brought the land when the prices were low.
With the constant increase in population, this sector has assured growth in the industry. Although assuming that profits seeked will be low but the supply for the demand will be there.
But, essentially what the developers should analyze is that, their target market and lower and middle income earning group for whom a home loan will be the only way to finance their dream. Although the space and locality will also be their quality check, however, it is the finance part, that they are more carefull about.