India has been known for its rapid expansion and the development, which its cities and the mega- cities have been witnessing. These cities are the audacity centers of country’s economy and widespread culture. The cities have offered number of housing options, better living opportunities, rising standards and robust infrastructure. India is rated as the fastest growing economy in the world which has shown tremendous growth in last few years.
But in this diversified cultural country, there are many families who are depriving of a roof on their head because of the high rising prices of the housing segments. For a middle class family it is not possible to own house, which compel them to live in rented houses which they need to flip regularly.
House prices have increased vividly at the end of 2015 and this also carried in 2016 witnessing complaints and allegations from the home seekers as they are unable to buy a home. But, after the capping new steps which government took in 2016 made people convinced that they canabyss out more money in 2017 and the analysts have also said that prices will drop in 2017.
Prime Minister Narendra Modi has addressed number of initiatives in 2016 which has made owning a house easier. Few steps has been taken which basically includes Benami Transactions Ban, Demonetization, Pradhan Mantri Awas Yojana and the latest step is the Decreased lending rates announced by the banks and also a brilliant Step taken for the betterment of farmers.
Let’s check out some of the steps that has paved a way for the affordable segments:
In the New Year Eve 2017, P.M. announced a move addressing the benefits for farmers, which they have faced during demonetization process. Three crore farmers who have Kisan credit cards will be given RuPay debit cards within three months and also the farmers who have borrowed to grow crops, the govt. will bear the burden of 60 days of their interest.
- P.M. Modi announced few new housing schemes boosting common man to own a house either in rural or urban area. Basically, it has been out to support demonetization. Two housing schemes has been launched for urban areas. In the first scheme home loan, borrower will get 4% interest subvention for up to 9 Lakhs rupees and in the second scheme it will be 3% interest subvention for up to 12 Lakh rupees under Pradhan Mantr iAwas Yojana. Also in rural areas, people who want to reconstruct their houses can borrow 2 Lakh rupees on 3% interest subvention.
On November 22, the government permitted the construction of 1.97 lakh affordable housing units under Pradhan Mantri Awas Yojana (Urban), launched in June last year.
- Prime Minister has come up as a big hope for the poor and the middle class and he also administered banks for their help. 2017 might act as a boom year for the investors. He asked their priority lending for these classes and a day after, top PSU lenders State Bank, PNB and Union Bank dropped their lending rates by up to 90 basis points. The country’s largest lender, SBI, has decreased Marginal Cost of funds based Lending Rate (MCLR) by 0.9 per cent from 8.90 per cent to 8 per cent for one-year tenure. PNB has cut its one year MCLR rate by 0.7 per cent to 8.45 per cent from9.15 per cent. Similarly, Union Bank of India has decreased its MCLR by 0.65-0.9 per cent to 8.65 per cent.
SBI’s subsidiary State Bank of Travancore had also proclaimed Reduction in the lending rate, followed by another public lender IDBI which cut base interest rate by up to 0.6 per cent.
- Prime Minister another vow was to take action on Benami, or nameless properties, which is a big culminating step that can bring greater pellucidity to a disreputably opaque sector.The exercise of buying a property in Real Estate in the name of some other person has been misused tremendously with fake names and incomes.
- Under the government's current, Credit-Linked Subsidy Scheme, payees of economically weaker sections (EWS) and low income groups (LIG) seeking housing loans are now eligible for an interest subsidy at the rate of 6.5% for a tenure of 15 years on the initial Rupee 6 lakh. This has somewhere strengthened the weaker section by availing them few benefits.
After these marvelous steps some of the builders are also in neck to neck race to dole the best but somewhere in this rat race, they forget about the middle class people who are unable to afford such high priced residency. But, there is always a Gem which outshines its importance by itself. Out of the stones of Real Estate, Tata Housing the gem of Real Estate world has its subsidiary naming Tata Value Homes dealing in affordable property has entered Noida with Tata Value Homes Noida.
Conclusion: Being fuelled by a wide number of privileged companies along with rapid emerging startups, realty is really becoming a matter of pride for the country. Despite the recent plummet and sluggish market, interests of the investors in this market have never gone down. And the brilliant steps in 2016 clears the growth that this sector can witness in 2017 turning unaffordability to affordability.