In the past few years, India has witnessed a troubling trend of purchasing affordable housing, which is rapidly shrinking. The valid reasons centre around the massive hike in land prices, followed by construction costs, which have limited the availability of budget-friendly housing properties. This has led to rising difficulties for lower and middle-income groups to own affordable homes in urban centres like Delhi, Mumbai, Hyderabad and Bengaluru.
However, amidst the housing crisis, Kolkata has been an exceptional spot. Where the rest of the state is facing a supply crunch of affordable apartments in Kolkata has come up with a 7% increase in availability. This is a matter of relief and renewed hope for first-time homebuyers.
Rise of Affordable Housing in Kolkata
As compared to other metropolitan cities, Kolkata stands unique, when it comes to buying affordable homes. The steady growth in well connectivity of suburban areas has led to a rise in real estate investors and homebuyers. For example, one of the reliable developers contributing to the positive trend is Srijan Realty, which is well-known for creating affordable homes. The housing projects are helping to reshape the perspective of affordable housing.
Affordable Housing Decline in Other Cities
Let’s get to understand Kolkata’s standout performance rather than other metropolitan cities.
- The other suburban states have been acquiring land for large-scale housing projects, due to which the prices have become expensive.
- The presence of complex approval often delays the project execution and raises costs.
- Cities are highly saturated with limited space, which is increasing the difficulty of accommodating new affordable apartments.
These are some of the common challenges which have driven the affordable homes segment to the backseat in other states, and also impacted the preferences of the middle-income group for home buying.
How Kolkata Becomes a Bright Spot
The rise of affordable housing available now in Kolkata has been driven by many special attributes.
- Unlike other metropolitan cities, Kolkata is still considered relatively cost-effective. Due to this factor, it allows real estate developers to come up with budget-friendly plans without compromising quality.
- Government schemes like Pradhan Mantri Awas Yojana (PMAY) with reduced GST rates have presented an increased number of affordable housing units, which is also implemented in West Bengal for better support of builders and buyers.
- Developed connectivity like metro lines, and flyovers have managed well in suburbs and central Kolkata, focusing on affordable apartments more desirable.
- Reputed developers like Srijan Realty are setting examples for affordable housing combined with an aesthetic touch and various luxurious amenities.
Ways to Address the Crisis of Affordable Housing
The rising crisis of affordable housing is not easy to manage and with better structural reforms, the crisis can be evitable.
- Revising the circle rate policy on a per monthly basis instead of annually on the maximum price cap can help to reduce the difference between the circle rate and market price by 5 to 10%.
- In India, over 1.14 crore homes are unoccupied and often held for investment. In this case, a vacancy tax can push the owners to sell or rent, leading to an increase in the number of homes, which are available to live in.
- Regulating NRIs’ investment as NRI contributes 10% of real estate investments between 2020 and 2019, and as they earn foreign currency, this adds to price caps on real estate investments that can protect local buyers.
FAQs
- How to consider affordable housing in India?
Affordable housing usually prices below 54 lakhs and depending on the amenities and location, the price range can vary.
- What is the cost of a Srijan Town Square flat in Kolkata?
To know the pricing of affordable apartments in Srijan Town Square, you need to contact the sales team.
- Why is Kolkata better for affordable apartments from other cities?
Kolkata is compared as better than other states because it has lower land costs, is less saturated, aiding in improved infrastructure and proactive developers like Srijan Realty.
- Can I purchase an affordable house under PMAY in Kolkata?
Yes, of course, Kolkata is registered under PMAY, which offers subsidies for eligible first-time buyers.
- Where to find affordable housing, which is available now in Kolkata?
You can explore Srijan Realty’s ongoing projects in different locations like Rajarhat, Garia and others and get to select as per your preference and budget.
Summing Up
From a brief discussion on India’s urban landscape, it can be validated that there is a decline in affordable housing in several metropolitan cities but not in Kolkata. A rise of 7% of growth in affordable home availability in Kolkata speaks about the city’s thoughtful urban planning and commitment of the leading developers like Srijan Realty.
For every family in Kolkata that aspires to own a home without any compromise on quality and convenience, buying affordable homes offered by Srijan Realty is an ideal choice.
