Effects of the new schemes launched under the Pradhan Mantri Awas Yojana would be felt more in tier-II and tier-III cities, as not many budget or affordable housing projects are in the works in metropolitan cities.
Institutional investments in Indian real estate have seen a strong start to 2025, with inflows reaching $ 1.3 billion in the first quarter - a 31 per cent year-on-year (YoY) increase. This growth was primarily driven by domestic investments, which accounted for 60 per cent of the total inflows during the quarter. With $ 0.8 billion inflows, domestic investments saw a 75 per cent annual rise and were largely focused on industrial & warehousing and office segments.
'Earlier, our cost of funds was higher than most in the peer group.'
Tata Housing's efforts at helping less privileged sections of society are commendable, but after a point it won't be able to do much for the simple reason that there aren't going to be enough lenders to give loans to these prospective home buyers.
After bidding adieu to his technology firm, this ex-Citibanker-turned-poet is now indulging in his latest passion of providing affordable housing for the masses.
Through the newly created business vertical Happinest, MLDL will launch two such housing projects in Boisar near Mumbai and Avadi in Chennai.
The demand for affordable housing is 535,400 units.
The growth was primarily driven by domestic investments, which accounted for 60 per cent of the total inflows during the first quarter of the financial year.
Reeling under the credit crunch and slump in demand, realty firms and consultants expect the Budget to provide more incentives for affordable housing sector and encourage buyers by doubling exemption limit on interest paid on housing loans to Rs 3 lakh.
The Maharashtra government on Monday made it mandatory for developers with layout of over 2000 sq mt to reserve 20 per cent of land for affordable housing.
Farmers too will get better deals
Akansha Dixit, who works in a firm in Mumbai, tells Rediff.com's A Ganesh Nadar what she would like to see in Finance Minister Nirmala Sitharaman's Budget.
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Chairman Anand Mahindra spoke to Business Standard on affordable housing.
In his Budget speech, the finance minister said: "We propose to facilitate higher investment in affordable housing. Affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits."
Affordability can be defined as the consumers ability to purchase, but it is a relative term. It may vary from individual to individual. It may also vary from location to location.
Housing prices in India have fallen by over a tenth in real terms. Yet, prices are unaffordable for most Indians. Middle-income Indians are seen to be able to afford houses if the price-to-income ratio is five. It is 11 in India.
In the wake of boost from the Budget & RBI move on affordable housing, Tata Housing & Mahindra Lifespace, among others, plan new launches.
Housing sales rose 7 per cent annually in 2024 across eight major cities to reach 12-year high at 3,50,613 units on better demand for premium homes amid stable mortgage rates and strong economic growth, according to Knight Frank. Last month, real estate consultant Anarock, however, had reported that housing sales declined 4 per cent in 2024 to nearly 4.6 lakh units across seven major cities.
Prime Minister Narendra Modi on Friday slammed the Aam Aadmi Party as an 'aapda' (disaster) for Delhi, saying this 'aapda' had taken the national capital in its grip in the past 10 years.
More recently, there has been a revival in this segment too, but this has been accompanied by a decline in activity in the affordable segment. Thus the housing scenario may be going back to what it always was with the affordable segment losing its brief moment in the sun as a result of waning interest of both buyer and seller.
Apart from recruiting 18,000 women in state's police force, Thackeray said all female police stations will also be established in Maharashtra.
New Haven's' flagship project will be launched at Boisar in Mumbai and will offer 1,300 apartments, including 2 BHK and 3 BHK homes starting at Rs 12.73 lakh with a minimum size of 670 square feet, a statement said.
On the individual front, housing loan rebate on self-occupied property was increased from Rs 1,50,000 to Rs 2,00,000.
Wiser from last year's free-fall, realty firms discovered a new mantra in 'affordable housing' and found help from banks who offered low interest home loans to build their businesses in 2009.
The industry status will help the sector access bank lending at average interest rates
The government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector. It is expected the move will boost affordable housing projects and smart cities across the country.
Maharashtra Chief Minister Eknath Shinde on Sunday said the state assembly polls are expected to be held in the second week of November and seat-sharing among the ruling allies would be finalised in the next 8 to 10 days.
Right to shelter should be embedded in a separate legislation as the problem is complex in view of the fact that housing is essentially a state subject, Singh said at the India Economic Summit in New Delhi.
The affordable housing segment will offer business opportunities worth over Rs 5,00,000 crore (Rs 5 trillion) as India requires more than ten million houses to be built by 2013-14.
With the recent Budget announcements, the sales in the affordable segment are expected to increase.
The Opposition had promised to scrap the Dharavi redevelopment project if it came to power. With the Mahayuti's massive mandate in the Maharashtra assembly election, that prospect has been laid to rest.
According to the government, the additional chief secretary of the state housing department is designated to sign an agreement with the Union government for the land lease transfer.
Buoyed by regulatory overhaul and infrastructure boom, engineering conglomerate Larsen & Toubro (L&T) has identified realty business as one of its growth engines for the next 10 years and plans to acquire land parcels while expanding pre-sales, said a senior company executive. L&T Realty has started looking out to acquire land parcels and grab partnership development opportunities across markets to scale up its business. "We are making some strides in that direction, albeit cautiously.
Builders bet on affordable homes as luxury sales dip, however, signs of revival after note ban and Rera are slowly visible
Ryan Wesley Routh, who authorities suspect was planning to attack the Republican presidential nominee as he played a round of golf, made these remarks to The New York Times.
During 2023, the Indian real estate sector - both housing and commercial - witnessed buoyancy fuelled by demand, supply, and absorption, and the sector is banking on the upcoming Budget to keep the momentum going. Mumbai-based Sattva Group wants the government to focus on the critical pillars for long-term growth. The company emphasised on the infrastructure boom with increased allocation, lower goods and services tax (GST) rates, incentives for affordable housing and single-window clearance to fast-track projects and support liquidity.
The ED had conducted searches against the legislator, Sai Aaina Farms Pvt Ltd (now Mahira Infratech Pvt Ltd), other companies of the Mahira Group and some others in July last year.
As many as 2,508 cities in 26 states have been selected under 'Pradhan Mantri Awas Yojana' for providing affordable houses to the urban poor.
Stocks in the automotive, financial, cement, metal, and hotel sectors are likely to benefit if the Narendra Modi-led Bharatiya Janata Party (BJP) comes back to power for a third time. The key investment themes have been identified after analysing the Sankalp Patra - the party's manifesto for the next five years - released on Sunday.
The Tamil Nadu government is set to unveil a housing initiative for 18,720 women employed by Taiwanese tech giant Foxconn, a key supplier to iPhone-maker Apple, this Saturday. The project, located at Vallam Vadagal near Chennai, marks the first time an Indian state government has constructed a hostel of this scale for a private firm - a model that's been successful in China and Vietnam.
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