Affordable Housing Crisis in India and ways to curb it

Anyone who is navigating the Indian real estate market space will have to reflect on a few related aspects to understand how much it has changed and what factors are dominant. While conducting the research on this topic, we got to find out that India is facing severe affordable housing crises which need to be taken into consideration. Hence, we have come up with this article just for you so that you can also take a deeper insight into it and learn the potential solutions that can address this issue.

Reflecting on the aspects of the affordable housing crisis

• Speedy urbanization alongside population growth- It is not a hidden fact that the Indian population is growing manifolds and a lot of individuals have been migrating from villages to cities to find employment. This has certainly created great pressure on housing infrastructure resulting in the shortage of affordable homes.
• High demand, limited supply- Since more and more people are migrating to cities, the affordable housing demand is rapidly increasing in metro cities. However, there is not enough supply to meet these needs resulting in the growing gap between demand and supply.
• Increasing cost- The reason why the price of properties such as Elan Emperor is soaring high is because of the fact the increased demand. Construction material has also become more expensive and the scarcity of sites available for construction is also resulting in higher costs.
• Ineffective implementation of govt. Schemes- While the government has been taking necessary initiatives, their implementation is not as effective as it should be. The overall supply of affordable housing projects is still not sufficient to meet the demands of the people.
• Resulting in slums and informal settlements- This is another evident fact that a large Indian population is living in slums and the main reason behind the growth of such developments is because of the inadequate supply of affordable housing projects.

Potential solutions to address the issue

To address the affordable housing crisis in India, following an effective approach is a must. This could require initiatives from the government and private sectors along with community support. Presenting below some potential solutions to get rid of this issue:

• Increase in govt. Investment/subsidies- Schemes such as Pradhan Mantri Awas Yojana (PMAY) should be implemented in a more effective way. The authorities should make sure that the expectant benefits from it. They should also make subsidized land available for affordable housing projects.
• Incentivizing the construction of such projects- Government and private contributors should incentivize the developers through different forms such as subsidies, faster clearance processes, tax exemptions, and more.
• Affordable rental housing schemes- Such housing projects should be made available to families having low to middle income where they can rent homes and later on purchase them by steadily accumulating equity.
• Improved access to loans- Financial institutions should be encouraged to offer low-interest on home loans and provide flexible credit terms.
• Reduced long-term maintenance cost– By the use of innovation and technology in upcoming projects, affordable housing can be ensured.

Conclusion:

By taking a look at the points that I have given above, it is evident that the main reason behind the affordable housing crisis is the growth in population and the factor of demand and supply. However, by effectively implementing the solutions that I have listed above, this issue can be curbed.