Affordable Housing - A step towards better transparency
A term that is frequenting the real estate news and market is ‘affordable housing’. In technical terms it means making housing affordable to the masses right till the grass root level. And why not because it is one of the basic needs of survival! In broader terms it means houses affordable to everyone who cherishes the dream of owning their own home with hard earned money!
The Union Finance Budget 2016 has given a welcome respite to this segment with its policies about focusing on affordable housing and infrastructure development. One highlight is that first time home buyers will get deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17, where house cost does not exceed Rs 50 lakh. Another important decision was the sanctioning of The Real Estate Regulation and Development Bill. The Bill seeks to protect the interest of the home buyers by increasing transparency and bringing in more accountability of developers, brokers and consumers as well.
There is service tax exemption on specific sized housing for developers who are into affordable or budget housing which will provide further impetus to focus on it. In a city like Pune this is good news all over for those involved in selling or buying property. “With the pace at which the city is developing there is a pressing requirement for affordable housing,” says Mr. Pradeep Runwal, M.D. Runwal Reallty adding, “Better infrastructure will also play a significant role in this process. The ease in commute will increase the potential of suburban property.”
Pune is a classic mix of an aspiring young generation and affluent, well-settled people. It’s a preferred destination for those moving bases from their home towns in pursuit of better careers and life. There is a large demand for mid-segment housing which ranges between Rs 35-50 lakh, especially for first time home buyers. The developers would definitely make the most of this prospect by rising to the occasion and focusing on budget housing. It will be an interesting scenario to watch out for in the coming years!