The Future of Social Housing in India - Home Loan Stories - Kotak Bank

16 AUGUST, 2019

Being the second most populated country in the world, one might argue that India needs a serious solution to a possible shortage of residential places. Increased job opportunities in metropolitan cities have triggered mass migration of the rural population towards these booming cities. On the other hand, the prices of properties are also growing, leading to a considerable financial strain on a homebuyer. To battle all these multiple concerns, the Indian Government has recently taken a noteworthy step to encourage affordable housing in different cities.

What is affordable housing?

Under the project of affordable housing, the Indian Government has instructed many property developers to build reasonably priced residential units. These affordable residences are meant for those homebuyers who feel the additional financial stress due to expensive rates of houses.

The scheme of affordable housing is meant to fulfil the housing needs of people falling under the category of low-to-middle income holders. The properties under affordable housing include newly-built houses and private-sector properties purchased for use as inexpensive homes.

Initiatives taken by the Government of India

In the last few years, the Indian Government has launched the Pradhan Mantri Awas Yojana (PMAY) to support the developing market of affordable housing. Under this scheme, the home loan subsidy on interest is provided to eligible individuals, so that they will be able to buy houses.

Projects under affordable housing

The demand for housing is increasing in India. Thus, private developers have joined up to support the programme of affordable housing.

The migration rate in India is considerably high in urban areas due to better job opportunities. To provide affordable houses to such a huge population, the Government and private sector are working hand in hand to open doors to better jobs and a fulfilling lifestyle. There are many projects under construction in different parts of Mumbai, which include Vasind, Karjat, Boisar and Palghar. Moreover, projects are being developed in Chakanand and Shikrapur of Pune.

The Government is working to streamline the home buying process with the help of the private sector. With the PMAY Home loan subsidy scheme and the development of many affordable housing projects in a different part of the country, it can be predicted that the future of social housing in India is positive and can only get better from here.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.