The Rise of the Budget Home
Builders developing projects in the Luxury, Value and Premium segments have started to move towards Affordable homes - a highly price sensitive segment categorised by smaller unit sizes, frill-free projects and of course as the name suggests - highly affordable costs. There has been a recent discovery of a mammoth demand in this segment. This has begun to translate into the gradual proliferation of smaller-sized units on the outskirts of cities.
The centre announced a credit linked subsidy scheme where the first 6 lakhs of a borrower’s loan amount will be priced at 6.5% as against the usual loan rate of over 9.20%, provided the person meets certain criteria.
It is estimated that there is a shortage of almost 20 million units for lower and middle-income groups across the country. Housing units with carpet areas of not more than 323 so. ft. in metros, and 646 so. ft. in non-metro areas are considered good bargains.
Quick fact: The demand for affordable housing is over 500% of current supply as compared to luxury or premium housing units.
In order to keep the cost of the projects down, and make them more and more Affordable, builders are doing away with amenity add-ons like swimming pools, tennis courts and gymnasiums, which most people don’t use much anyway. The emphasis is basically on functional homes that are highly affordable on a limited budget.
Buyers on their part have shown a willingness to relocate to the outskirts in order to own their own home. And while this is good enough for builders to go ahead full steam with their plans, this should definitely serve as a signal to all the governments, to develop faster and safer commuter routes to city and business centers.
Adani Realty has 2 brands of Affordable housing with projects across the country - Pratham, Aangan. The projects offer all the basic comforts of living and conveniences such as proximity to markets, a community garden, wide access roads, decent locations etc. at extremely affordable rates.