People living in properties which they cannot really afford are often unhappy. Private sector developers have to embrace new-age construction techniques for lowering costs as opined by Kanika Gupta Shori, Co-Founder & COO at SquareYards. Insecurity linked to a home affects every individual and most people know how tough it is to find high-quality homes in metro cities at affordable prices. More than 50% of homebuyers have reportedly made trade-offs for covering home loan EMIs or rentals. These include pursuing side jobs or businesses, cutting overall costs and travel and other expenses or even shifting to remote areas on the outskirts of major cities.
The development of innumerable children in the country will be compromised if they live in houses which their families cannot afford and the happiness quotient will also be compromised. Children living in far-off areas often get deprived of proper social and educational infrastructure. This affects Kanika as a mother herself and a large number of families spending most of their income on housing have to choose between rentals or education of children or even transportation costs and leisure expenditure.
Spending power is improving and so is the overall ease of doing business in India. There has to be an effort to make housing really affordable, keeping the quality aspect intact. Housing for All could be a game-changer towards meeting the gap in the supply of affordable units which will reach 30 million units by the year 2022 as per reports. Land costs are the major hurdle towards affordability of homes in major cities. Prime land is also lying stuck in many cities, having been encroached upon or simply untapped and belonging to government bodies.
Huge land costs and input expenses are making low-cost housing ventures non-viable. There have to be reformed for enabling the development of homes, releasing stuck land for more supply and incentives for developers. Urban sprawl should be restricted and political will should be there to back affordable housing with suitable infrastructure and regulatory scenarios for non-profit and profit segments. New-age construction materials and techniques can be used for lowering costs. Banks and financial institutions should come up with new financing and tenure systems in collaboration with real estate developers.
Affordability of housing needs a sustained effort. Developers thrive on innovation and they will certainly figure out solutions in the long term in collaboration with government bodies and all other stakeholders.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.