What does an affordable house mean?

We often hear that real estate has a new concept for middle class family, which is so called “Affordable house”. Almost everyone showed a positive attitude for such concept because when it comes about a middle class family, everyone thinks about the cost. But is this concept feasible? Almost all developers are offering 1BHK flat in far-flung are with a name “Affordable house”. According to Mr. Deepak Parekh, chairman of HDFC, “Affordable housing is not about box-sized, budget homes in far-flung places where there is no connectivity to work places and little surrounding infrastructure”.

Affordable house should be such a housing solution which has economic sense in terms of proximity of work place. This concept also requires public and private sector collaboration.

Buyers realize homes still not their cup of tea

Property prices across the country are 10-25% lower than their peak in early 2008. Bank rates are about 4 percentage points lower. Still, the vast majority of the exploding middle class, which aspires to own a home, is not taking the plunge. Homes are still not affordable. Affordable homes are hardly homes.
The rates may have come down, but even today, the prices quoted by sellers are too high. The developers have reduced the price, but have started charging more for the parking space, which one has to compulsorily buy and that too pay black money for that.

Can Affordable house become your dream house

When we think about affordable house, a picture of congested home, situated far away from the city, comes in mind. Such images are pulling the buyers away from investing money.  Builders are forced to think about cost cutting without compromising buyers expectations.
Puravankara is using cost effective construction techniques like prefabricated homes. Basically, your home would be built out of a mould and then fixed on to the mainframe structure of the building. This technology could bring construction cost down by up to 30% and speed up the delivery time by up to 24 months as compared to conventional construction techniques.
Affordable housing is all about reengineering of design and optimal usage of materials, which can bring costs down by 15% to 17%.  If builders use such techniques to cut the cost then affordable house will also known as Dream house.  Affordable housing is not about compromising on quality and comforts.

Two million affordable houses required

Affordable housing is the only solution for the middle income indians. Most of the people are in search of affordable homes in metros particularly in delhi/ ncr, bangalore, chennai and pune. According to the report by Knight Frank Research Households with an annual income between Rs 3 lakh and Rs 10 lakh in Mumbai, NCR, Chennai, Bangalore, Hyderabad, Kolkata and Pune will need 1.65 billion square feet of space in coming couple of year. This trend may help developers to launch affordable house projects. But to make their projects more feasible, developers should think that their projects should not be in to far fringes area. It should be properly connected to the city and easy transportation should be available to the main places of the city specially the railway stations and airport.

“Affordable house” or a compromise?

Finding a home in metro cities is not cup of tea for a middle class family. If we talk about affordable house projects, either such houses are in far fringe areas or a result of poor design, cheap production material and lack of space. This simply means that buyers have to do some compromise with their expectations. Many real estate companies are launching houses at 10-20 lakhs. But most of them are not up to mark. If we talk about tier II and tier III cities, those who are working in metro cities cannot move towards small towns for a house.
As per my opinion, there should be some design standards for builders and if they offer affordable house, cost cutting must not affect the design and production material issues.