The real estate industry in India has been tussling with overwhelming challenges after experiencing declining sales in recent years. The demand for properties started declined in the year 2013, while 2016 had seen an all-time low in the industry. Excess supply, demonetization, etc. were some of the factors that affected the sales in the real estate industry.
With the implementation of RERA and GST in 2018, the industry has witnessed a huge transformation. Currently, buying a property involves more than just the land value as it has many other additional transactional costs like GST, legal and administrative costs, statutory costs, financing costs, etc. These changes in the regulations have forced the consumers to choose smaller homes that can accommodate their budget.
While these changes significantly affected the investment preferences, the industry beheld the liquidity of the Non-Banking Financial Companies (NBFCs), a significant cog in the real estate funding wheel. The NBFCs have been supporting the real estate sector with the capital required to construct the buildings, which arecontributory on bridging cash flow gaps for developers all over the country.
Although these changes have vastly impacted the market, certain favourable schemes have been introduced to back up the industry. Amongst others, the government of India’s focus on affordable housing scheme has allowed the developers to offer luxurious homes at affordable prices. With this scheme, the government aims to provide homes to first-time homebuyers more than the ones who are looking to invest in bigger and better houses.
The developers have blended affordability with luxury housing and modern expectations to deliver aspirational comfort that matches the international standards. This has resulted in an increase in demand for affordable housing in India for those who aspire to own a house to elevate their standards of living. The idea of affordable luxury housing equips various factors that can shape the real estate industry in the coming years. Let us explore them.
- International standards: Today, an ordinary customer in India is well aware of the international standards of living. Their expectations are not limited to basic housing needs; rather, they look out for the size of the house, location of the property, amenities offered, social infrastructure in the area, the rate of returns from the investment, etc.
- Innovation in development: The affordable luxury housing segment is being driven by innovation. The developers are paying attention to space management and architectural designing while building houses. This allows them to shun traditional designs and adopt modern and prevalent trends. Other points of concern for developers include propersunlight in the house, rainwater conservation, wind direction, distance from the highways and major traffic hubs, and safety and security in these houses.
- Technology in homes: Amongst all other trends, technological advancement is gaining wide-spread popularity in the real estate sector. Development in AI and robotics are shaping up the industry in many countries including India. The growth of affordable luxury housing will be accommodated with technology-driven urbanization. Facilities like voice-activated locks, smart air-purification systems, climate and temperature control, IoT devices, etc., will gain popularity under the rising affordability of technology.
- Involvement of Government: As we have mentioned above, the Government of India has put strong emphasizes on affordable housing. In line with this, the government has launched Pradhan MantriAwasYojana, which aims to provide houses to by 2022. Under this scheme, people who have availed the loan pay a subsidized interest rate while paying the EMI. You can know more about PMAY from our blog.
These factors are certain to raise the demand for affordable luxury houses in 2019. SwarnaGriha, an initiative by Felicity Adobe and Hebron Properties has been developing affordable luxurious houses in Tumakuru. These homes are well-equipped with modern amenities and offer perfect a dwelling to people with lower incomes of the society. Additionally, these homes are available under PMAY scheme in Tumakuru. You can know more about SwarnaGriha homes from here