Affordable Housing In Mumbai Saw 27% Rise
Housing for all by 2022 is not only governments dream but also the dream of every citizen of India. Affordable housing in Mumbai was leading at 27 % in this segment. These readings came in the new report by Cushman & Wakefield that covers top eight cities across the country.
It was seen that in Mumbai alone more than 26,000 new units were launched in 2017 in the affordable category. Out of the new launches in affordable segment 40 percent were in Mumbai (10,500 units), followed by Kolkata and Pune. The government has decided to deliver 1.2 crore affordable houses by 2022 and so the affordable housing segment is expected to continue its momentum. This segment caters to the unmet demand of a large section of the Indian population looking for affordable housing. To check this momentum the government could also explore adding a few incentives on land acquisition costs as land cost is the largest component of project costs.
Reports have also soon that Mumbai (+1 percent) saw the highest number of launches at over 19,400 new residential units till September 2017. Affordable housing developers in Mumbai are also happy as they see a rise in demand in this segment. Affordable housing in Mumbai was close to 10000 units registering a rise of 300 percent over the same time last year. Mumbai was followed by Pune (8,400) and Bengaluru (8,200) both registering a year-on-year decline of 41 percent and 48 percent respectively in the total number of new residential units launched.
Affordable housing in Mumbai is an attractive proposition both for developers and consumers as the demand is huge and largely unmet. The high focus of the central government has resulted in the availability of more funding options for the developers such as ECB, FDI and debt financing from national financial institutions at highly competitive rates. However, there are challenges for affordable housing projects in Tier 1 cities, where land costs and availability within established locations is very difficult, as per reports says Anshul Jain, Managing director, India Cushman & Wakefield.