The Affordable Housing segment is set to get a big increase with the Haryana Cabinet’s go-ahead for amendment in Affordable Housing Policy-2013 Haryana Development and Regulation of Urban Areas Act 1975 for alter in Minimum Area Limit, Project Area Limit, Increase in Commercial Component, and Parking Provisions. After the most recent recommendations on December 23, developers would be in a position to improve the quantity of units, and the purchasers who have been not booking flats since of the lack of parking space will now come forward.
The Affordable Housing segment was observed as the minimal facility accommodation, and it was all about 4 walls. No automobile parking space in the project was a hindrance, and the inclusion of 1 automobile parking space will improve the segment’s reputation. Though very affordable housing has the maximum demand, quite a few purchasers have been apprehensive due to the lack of automobile parking space now, with 1 automobile parking space to be offered in the projects, the demand will get a additional increase. The millennial purchaser, who was not keen on obtaining in a project without having a parking space, will now invest in it as quite a few of them fully grasp the significance of owning a genuine estate asset, and very affordable housing is the easiest way for them as it comes with minimum investment. Another increase is the improve in the industrial region in the project that will imply more margins to developers struggling with low earnings.
The project’s size can now be up to 30 acres from 10 acres earlier, which is a major adequate size to come up with a massive quantity of units and work speedily towards attaining the target of housing for all. The project’s earlier permitted size forced quite a few developers of repute to remain away from this segment as the margins have been not fantastic adequate for them. The ongoing projects can also advantage from the selection if 2/3rd of the allottees agree to alter in the improvement strategy. We do not see any issue as purchasers will be acquiring an further advantage, and they will not thoughts a minor alter in the strategy to incorporate a automobile parking space. The year 2020 saw elevated traction in tier II and tier III cities post-COVID-19. The most recent selection will lead to numerous projects in such cities in Haryana. We foresee that cities such as Gurugram, Panipat, Karnal, Dharuhera, and Faridabad could see prominent developers enter the fray.
The selection will enable the segment as it was the only segment that saw maximum sales and the maximum quantity of new launches in 2020 as 70% of all the launches final year have occurred in this segment. The step is commendable as the government has not place any extra burden on the purchasers, who will get anything in the similar cost. For developers, the industrial has been elevated from 4 per cent to 8 per cent, which will enable them get some fantastic margins out of the very affordable project and work more aggressively towards this policy. So far, the government’s policies have worked nicely on each the demand and provide side. This is a New Year present by the government to the segment, which performed nicely even through the pandemic’s difficult occasions.
(By Pradeep Aggarwal, Founder & Chairman, Signature Global Group, and Chairman, Assocham, National Council on Real Estate, Housing and Urban Development)