Having own home is a still dream for many of us. It's not only a home, it gives us the peace. In most cases, users try their best to find affordable housing in their preferred area. A housing which will not make a hole in their pocket and their dream will be fulfilled as well. Builders also try their level best to provide that to teh users to increase the sales rate and to increase the customer satisfaction rate. However, builders face many challenges in providing affordable housing. In this article, I will inform you about these challenges. To buy affordable housing for yourself, connect with Realtech Nirman at any time.
Land prices: The population of India is increasing rapidly. So, land acquisition is also very high. According to the World Bank, India's urban land area is only 3.7% of its total land area, which is significantly lower than other countries. This is increasing the prices of land in the urban area significantly. So, for the builders, the investment cost is increasing every day in teh urban area and it is literally impossible for them to provide affordable housing in the urban area. However, the definition of affordability varies and now most of the buyers know this factor. So, often they compare the prices & the amenities and find out the affordable one among those. For example, Realetch Nirman is offering 2 or 3 BHK flats in teh Newtown Rajarhat area from 24 lakhs onwards and this is extremely affordable on the basis of the area and the kind of amenities the housing is offering. After all, Newtown, Rajarhat is the new economic zone of Kolkata.
Urban planning and infrastructure: The current population of India in 2023 is 1,428,627,663. The population of India in 2022 was 1,417,173,173, a 0.68% increase from 2021. It is an increase of a 0.81% increase from 2022 to 2023. Well, this is nothing surprising anymore. The population of India is increasing rapidly which is increasing the pressure on the real estate sector significantly.
It is very heartbreaking to say but the truth is most of the cities of India are unplanned and the rapid urbanisation is putting pressure on the infrastructure part too. This has also resulted in inadequate urban planning, which has led to the development of informal settlements and slums. This is making a huge challenge for the builders. They are facing problems in finding the right legalised land for the project, they are facing issues while buying them as most of them do not have any papers and builders are facing issues while making the project as the whole area is unplanned.
Red tapes in the real estate business: The approval process for housing projects is complicated, and developers have to comply with several regulations, which increases the cost of the project. The legal proceedings are also time-consuming. However, the state governments are working hard to remove this complication and many of the state governments such as West Bengal have removed the complications successfully too.
Pandemic hit: The pandemic had hit this sector badly. Real estate is one of the worst-affected sectors due to the pandemic. Back in 2019, affordable housing was in the trend. However, the pandemic came and caused a huge loss which directly impacted the prices of the properties. Currently, there are very few builders in the sector who are providing affordable housing due to this.
Maintenance cost: Housing is not all about making it, it is also about taking care of it or maintaining it correctly. So that the users do not face any issues. However, the pandemic has made an impact almost on all sectors. In many of the sectors, it has increased the prices significantly (related to real estate) which has increased the establishment/maintenance cost in the real estate projects. This is also a challenge in order to provide affordable housing.
Some common FAQs:
Can I get an affordable home in Newtown?
You can get a 2 or 3 BHK flat from 24 lakhs onward. Just connect with Realtech Nirman.
Why am I not getting affordable housing?
The prices of land are increasing rapidly and the increasing population is also helping in raising the prices of real estate. So, it is getting difficult to get a home at an affordable price.
Can I get good amenities in affordable housing?
Yes, you can. For example, Realtech Nirman is offering 2 or 3 BHK flats from 24 lakh onward in Newtown Rajarhat which is pretty affordable. There you will be able to get amenities like a swimming pool, a community hall, parking space, a 24*7 power supply and own water filtration plant and so on. You just need to find the right builder.
Final words: I hope this article has helped you to understand the underlying issues of the real estate industry. Corporate and happy home-buying folks.