Affordable housing has a as a high rate of absorption, which makes it a profitable business. Affordable housing also helps in socio-economic growth both at a locality and city level, because it invites in higher earning groups. With the new developments in affordable housing segment, wider investor community will be motivated to invest. From brick and mortar, affordable housing has now moved to well-designed modern apartments with smart technologies. These homes hold an aspirational value for a buyer, whose current living conditions are compromised.
With reforms and push from the government, affordable housing is emerging as the preferred segment for housing finance institutions and developers alike.
- There was a time when affordable housing categories did not get much attention, but with the current government, a significant amount of changes has taken place in this respect.
- LIC Housing Finance said it has identified affordable housing as the focus area for the current year and has devised strategies and action plans for greater emphasis on the sector.
- According to a report by domestic ratings agency CRISIL, affordable homes are altering mortgage market dynamics.
- The ‘infrastructure status’ granted to affordable housing, was a long-standing demand by real-estate developers who can now enjoy the benefit of lower borrowing rates, tax concessions and increased flow of foreign and private capital into their projects.