Affordable housing has undoubtedly gained considerable prominence in Gurgaon in recent years. However, affordable housing in Gurgaon still faces several challenges arising from multiple factors. Despite the high demand for affordable homes, not many projects under this segment have been developed. Considering that shelter is one of the basic needs, this is indeed a problem that needs to be addressed immediately. Through various schemes and policies, the government has been actively trying to provide the affordable housing segment with a much-needed boost.
The demand for affordable housing
The census of India in 2001 showed that 28% of the Indian population lives in urban areas. A decade later, the 2011 census recorded a metropolitan population of 31%. However, affordable housing in urban areas hasn’t grown at the same rate.
- Currently, India suffers a deficit of almost 19 million homes. This number is undoubtedly quite alarming.
- There is a housing deficit of 95% in the economically weaker sections. This implies that a housing deficit of almost 18 million properties has risen among these groups.
- It is expected that by 2031, the urban population in India would grow by 600 million. Consequently, the demand for housing would rise too.
- Unless necessary measures are taken to bring the situation under control, the housing deficit will double by 2030.
- As per research, the mid-income group suffers from the lack of affordable housing projects in Gurgaon. About 80% of this segment of the population is known to live in congested conditions.
What is causing a hindrance in the development of affordable housing?
Despite the urgent need and high demand for affordable housing, the segment fails to grow at the rate it should. This is due to a variety of issues faced by the developers and the homebuyers.
- While the demand for housing has grown, so needs land. Urban land is rarely available at reasonable prices, which causes a hike in the cost of production.
- Due to the high prices of urban land, many developers are forced to build affordable projects in rural areas. It deters the homebuyers from purchasing these properties, as they would suffer from major infrastructural and connectivity problems.
- To make housing more affordable, the government has several schemes, such as the Huda affordable housing policy. However, the lack of literacy among the low-income groups keeps them unaware of these schemes and prevents them from enjoying the benefits.
- The government of Haryana has declared several tax benefits for the builders taking up affordable housing projects. However, as the profit margins are thin and capitals aren’t cheap, most developers are hesitant to venture into this segment.
What are the viable solutions for these issues?
Like any other issue, there are solutions for affordable homes in Gurgaon too. While some of these have already in effect, the rest need to be worked on.
- Even when the property prices are relatively high, easy payment plans allow the economically weaker sections to buy these homes. Under the scheme for affordable Huda housing in Gurgaon, the housing projects enable buyers to pay for homes over long periods.
- The weaker sections of the society need to be educated about the schemes and policies by the government. Only then would they be able to make the best out of these schemes and avail homes at affordable prices.
- The cost of purchasing a home in India includes a lot of charges like stamp duty charges, GST, registration charges, etc., together constitute about 30% to 35% of the price of a home. Unless this is addressed, making adequate, affordable housing a reality would remain challenging.
- The government needs to liberate land in urban areas and allocate affordable housing projects at low prices. Only then, affordable housing would genuinely grow in urban areas. This has already been taking place, with several new affordable housing projects in Gurgaon located in prime locations.
- As affordable housing is mostly developed in the semi-urban or rural areas, the government would need to improve the infrastructure in those regions. Properties in such localities would attract homebuyers only to enjoy proper connectivity and the necessary social amenities.
The growth of the affordable housing segment in Gurgaon is the need of the hour. The government and the developers need to work together to come up with properties at reasonable prices. Several projects offering affordable flats for sale in Gurgaon have emerged under the Huda affordable housing policy. The trend is expected to grow, with the constant support from the government towards this segment.
