There’s a cloud over middle-class dreams of affordable homes

Reaching The Roof


Unaffordable Housing?
Around 15% price escalation in last six months hitting demand for affordable housing projects
Low appetite for risk, commute distance or drawbacks in infrastructure is holding back buyers
Perceptions of affordable housing differs across cities and income groups
Price is a starting point, but most consumers are also seeking quality and infrastructure

Similarly, PropEquity’s report till early November 2009 indicates that there has been better offtake in the sub-Rs 15 lakh category, particularly at locations closer to large cities. Overall, of the 90,000 units available in the ‘affordable’ category, only 40,000 had been bought. Describing 40 per cent absorption as not bad by industry standards, Jasuja adds that with market sentiments improving sales have since inched up.

Developers point out that land cost is a big decider in the final price tag. That’s why many projects are coming up further away from big cities. Where transportation and other facilities compensate, there is no lack of takers. Falcon Realty Services has got good response for its 2,500 units priced at Rs 5.9 lakh-Rs 28 lakh at Global Eco City, a 45-minute drive from Delhi international airport. Good facilities, including transportation, is proving the clincher.

As Rajiv Mehrotra of Noida-based Sunshine Enterprises puts it, “Demand is there, but there are hardly any houses below Rs 20 lakh available.” Already staring at rising inflation, people’s euphoria over affordable housing looks likely to fade—unless the government lends a helping hand.