Requirement of affordable housing in Gurgaon.

Affordable/ Budget Home in Gurgaon - A mere dream

I wish to bring some important issues & aspects those are directly or indirectly affecting to introduce Affordable House in Gurgaon: -

1) Housing in India

2) Residential demand in Gurgaon
3) Density for Group Housing Project in Gurgaon Area
4) Interest Rate subsidy on Loan only up to Rs.20 Lac
5) Affordable Housing – Issues
6) Interrelated factors for affordable house in Gurgaon
7) Development & Basic amenities

1) Housing in India 

• 
  
  A basic human necessity
• Second largest employment generator, next to agriculture
• Forward and backward linkages with 250 ancillary industries
• An engine of equitable economic growth – Investments, Savings, Wealth
• Promotes financial stability and economic resilience
• Largest Component of Wealth (asset building, old age security, women empowerment, a sound collateral for various finances)
• Contribution of Housing in GDP is still about 4% despite supportive Fiscal, Monetary & Legal Environment
• Percentage of Mortgage Debt to GDP is 8.50%(E) in 2005-06, still way below China’s (12%), Malaysia(22%), Hong-Kong (40%) and US (65%).

2) Residential Demand

Gurgaon, one of the most vibrant city of North India is in need of affordable housing in the form of affordable apartments. With a population of more than 1,000,000, Gurgaon is one of the main satellite cities of Delhi. The rapid industrial development and advancement in the IT & ITES segment has created a demand of affordable apartments in Gurgaon. There is a strong demand for affordable housing projects, as banks have announced attractive rates for loans from to Rs 5 lakh and up to Rs 20 lakh.

3) Density for Group Housing in Gurgaon

The present density is allowed by the Govt. is 250* for group housing project in Gurgaon. Following the norm, an average of 1700 sq. ft. size apartment can be possible that cost more than Rs.50 Lac. Considering the demand in Gurgaon, it is always out of budget for a common man.

4) Interest Rate Subsidy

In recent times Government & Banks have given a lot of relaxation to the home loan customer by decreasing interest rate on loan up to Rs. 20 Lac., but due to non availability of economical homes in Gurgaon, this seems to be impractical in today’s scenario.

5) Affordable Housing – Issues

a) Limited supply
b) Cost-property, finance
c) Land- Security of Tenure
d) Legal and Regulatory Framework
e) Technology-Little mass innovation in residential housing
f) Finance
g) Registration Charges

6) Affordable housing demand intensified by 3 interrelated factors

a) Growing affordable housing supply shortage
b) Unwavering home value to income ratio
c) Incessant development pattern producing a housing supply mismatch with the housing demands of Gurgaon’s existing and future resident workforce.

7) Development & Basic amenities

Today most of new residential projects are coming away from CBZ and in this scenario, economical / affordable homes are only possible either at very far from developed area or from City area. It would be hard to survive with out basic amenities such as water, electricity, sewage, school, hospitals & transportation. So an intense demand for home is always required in close vicinity of developed area.

The apartments in Gurgaon, be it a rented one or be it the owned ones comes in a varied types of luxury level in accordance with the necessity and demand of the buyers.

Quite ideally therefore to match up with the need of affordable flats and apartments in Gurgaon, Real Estate Developers should take an initiative to offer affordable homes to the needful in Gurgaon.

An economical home,  2 BHK apartment measuring 800 -900 Sq. ft. costing Rs.25 Lac & 3 BHK apartment measuring 1100 -1200 sq. ft. costing Rs.35 Lac max. should be welcomed in this scenario.

Affordable, Budget phrases used here for Economical Homes for middle-class segment.