Amid overall weakness in realty sector, this segment sees booming demand; check what’s fueling growth

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Published: November 7, 2019 7:16:01 PM

Even as the realty sector, in general, sees weakness in demand, affordable housing segment is expected to see a boom in the coming days, a study said.

house, carThe global survey released on Thursday revealed that at least 73 per cent of urban Indians can afford to buy a new home in the local property market or real estate sector.

Even as the realty sector, in general, sees weakness in demand, the affordable housing segment is expected to see a boom in the coming days, a study said. In addition, the low-interest finance schemes with easy repayment options may provide a further boost as a substantial portion of urban Indians can afford to purchase a new home, Ipsos Real Estate Affordability Survey said. The global survey released on Thursday revealed that at least 73 per cent of urban Indians can afford to buy a new home in the local property market.

“We see a boom in the realty sector in terms of premium to affordable housing projects that have come up and are in the pipeline, wooing urban dwellers with frills. Further, low-interest finance schemes provide easy repayment options and is also likely to provide an impetus to this sector,” Ashwini Sirsikar, Country Service Line Leader,(Qualitative Research), Ipsos UU India said.

Global markets for affordable homes

China (74 per cent), India (73 per cent), Saudi Arabia (61 per cent), US (55 per cent) and Peru (55 per cent) are the countries that have affordable homes in good supply for buyers, the survey also showed.

Markets lacking affordable homes

The global markets with least affordable homes include Hungary (16 per cent), Japan (17 per cent), Serbia (19 per cent), Poland (25 per cent) and Argentina (32 per cent), among others.

Meanwhile, on Wednesday, the union cabinet approved the establishment of a ‘special window’ to provide priority debt financing for the completion of stalled housing projects in the affordable and middle-income housing sector. The finance minister also said that the government will act as the sponsor of the fund and infuse up to Rs 10,000 crore. The fund will provide relief to developers with unfinished projects and also ensure the delivery of homes. Adding, she said that a total of 4.58 lakh housing units are stuck and around 1600 projects are stalled.

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