Under the proposed scheme, there will be tripartite agreement with member, bank/housing agency and EPFO for pledging future PF contributions as EMI payment.
The government's vision of "housing for all by 2022" may turn out to be an uphill task with developers keeping off low-cost housing projects citing regulatory hurdles, high land cost and low returns making such projects "unaffordable".
After successfully dabbling in organised retail in 2006, Mukesh Ambani, chairman of India's largest private sector company, Reliance Industries (RIL), has now set his eyes on no-frills, low-cost housing."RIL has deep pockets and excellent execution skills. It has executed two large projects like the Jamnagar refinery and the KG-D6 basin in a record time. Another such large project is only obvious for the company to get into," said a source close to the development.
India needs about 19 million low-cost homes -- roughly defined as costing a million rupees ($16,700) and below -- to shelter an urban population expected to nearly double to 600 million by 2030 from 2011.
The minister was speaking at a seminar on low cost housing, organised by the Indian Building Congress.
The government on Monday said low-cost housing loans of Rs 15 lakh will be eligible for one per cent interest subsidy, which will help in increasing the demand for such housing.
The houses that he designed, though low in cost, were high in value
Maruti Suzuki India Ltd (MSIL) is planning to offer low-cost houses to its 5,000 employees, as it tries to walk the extra mile to improve relations with workers.
After exporters, real estate companies are demanding a priority sector tag for loans to the low-cost housing sector.
The move could streamline capital flows and help finance current account deficit
The prime minister's sop is expected to give a massive boost to priority-sector housing loans, thereby pulling the entire housing loan portfolio of banks.
Income from renting of properties is taxed at a flat rate of 10%.
There will be tripartite pact with member, bank/housing agency and EPFO.
Tata Housing, a unit of Tata Sons, is advancing its plans to build 15,000 low-cost dwelling units by two years. Besides, it should add 300 more houses in its Mumbai project to take the advantage of demand for such homes, a top company official said.Tata Housing had earlier planned to develop 1,000 houses under the brand 'Shubh Griha' in Bhoisar, a distant suburb of Mumbai, priced at Rs 3.9-6.7 lakh.
Hadapsar in Pune is a resettlement colony. Rows of little houses here are a contrast to what one finds in slum settlements.
Stamp duty, registration to be included in loan calculation
A new crop of lending agencies like Dewan Housing Finance, Gruh Finance, Micro House Finance Corporation, SEWA and Mahindra Rural Housing Finance have entered the market.
For loan amounts lesser then Rs 25 lakhs, the interest rate should be lower and should scale up as the loan amount goes higher.
There is a shortage of 24.7 million housing units in urban areas at the beginning of the 11th Five Year Plan. Admitting the flaws in the housing sector planning for the huge gap between demand and supply, Selja said unfortunately the private sector only focuses on high-end housing and ignores low cost units.
Provisions of RERA, subsidy under PMAY and relaxation in PF withdrawal to buy a house will aid affordable housing, points out Harsh Roongta.
Margins for developers have fell to 15-20 per cent in affordable segment.
Real estate developers in Mumbai propose to join hands to construct 5 lakh affordable houses for middle and lower income groups in partnership with the Maharashtra government in the next five years in the fast-growing Mumbai Metropolitan Region.
The company is also exploring the markets of Bangalore, Nashik, Panvel, Thane and Pune among other cities for the same.
However, the cost for the coming round is yet to be decided; it will be below Rs 10 lakhs (Rs 1 million) for each unit offered, but how much below is not clear. Nor have the cities been decided.
The scheme is expected to activate the measures announced for the housing construction sector under the economic stimulus packages. It will increase the stock of houses ranging from 300 sq ft to 1,200 sq ft plinth area built at affordable rates on land provided by state governments.
Unitech would launch affordable housing projects in seven cities this week. The projects would come up under 'Uni Homes' brand at an affordable price range of Rs 10-30 lakh (Rs 1-3 million). The projects would come up at Noida, Greater-Noida, Chennai, Kolkata, Rewari, Bhopal and Mohali.
The reputed urban planner designed IIM-Bangalore, Tagore Memorial Hall, Aranya Low Cost Housing in Indore and private residence Kamala House in Ahmedabad among many others.
Adhiraj Parthasarathy, a professional from Telangana, tells Rediff.com's A Ganesh Nadar what he would like to see in Finance Minister Nirmala Sitharaman's Budget.
Take a look at what economists and analysts have to say about this budget.
'Today when people are fighting to get their salary, you are telling them you will privatise airports!'
The notification shall come into force on July 1.
Hyderabad-based Indian School of Business is focusing on building emerging market competencies to differentiate from others.
The demand for affordable housing is 535,400 units.
Jamshedpur gave birth to Telco (now Tata Motors) which has just launched the low-cost Nano; Jamshedpur, according to the 35-year old Tata Housing Development Company managing director Brotin Banerjee, is what inspired Tata Housing to launch its Shubh Griha low-cost housing project in Mumbai.
Tata Housing Development Company, a unit of Tata Sons, expects to earn Rs 700 crore (Rs 7 billion) in revenue from low-cost housing in the next four years, a top company official has said.
But there are challenges, observes Tamal Bandyopadhyay.
He designed some of India's most iconic buildings.
The government on Monday said low-cost housing loans of Rs 15 lakh (Rs 1.5 million) will be eligible for one per cent interest subsidy, which will help in increasing the demand for such housing.
The Prime Minister's Office has suggested that EPFO should deploy 15 per cent of its funds as loan for low cost housing saying it would generate a credit flow of Rs 70,000 crore (Rs 700 billion).
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