Pashmina Developers-Affordable Housing In India

1. Pashmina Developers-Affordable Housing In India Home ownership is a capital intensive and complicated procedure. In the decades gone by, typically people looked at home ownership as something that was left to the later years in life. In your early years you either lived with your parents in the family home or found a temporary rental accommodation if you moved out of your home town. Investment in property never really came up until someone had spent considerable time in a city and they were at a more advanced age. The country however has seen a sea change in demographics and people’s thought process over the last two decades. Individuals even as young as 28-30 year olds are now actively considering buying a home. There are various reasons behind this trend, some of which have been pursued in the following paragraphs. Rapid urbanization since the 1991 economic liberalization meant that over 30% of the population now moved to the cities. Heavy influx of migrant population coupled with increasing propensity for nuclear families and rising income levels meant that a greater number of people were now willing to consider investing in property much earlier than usual. Banks also opened up their bourses with relaxed home loans. And thus it gave rise to the phenomenon of affordable housing which in essence meant that these could satisfy a certain criteria of affordability factors. As noted in a study undertaken by KPMG, “Affordability” as a concept is very generic and could have different meanings for different people based on differences in income levels. Affordable housing refers to any housing that meets some form of affordability criterion.” The study defines affordable housing in terms of – income levels of buyers, size of the dwelling unit and possible outgo from monthly income towards servicing the home loan EMI. Some of the key factors contributing to the rapid acceptance of affordable housing in India are enumerated as below: Aspirational factors: The new-age economy threw up a populace that had the means to own their own home. Besides, most of the populace was now moving away from small towns to bigger cities where their first home would invariably be rented ones. As incomes grew and familiarity with language & culture, the migrant population grew more aspirational to have the place of their own. Cheap home loans: Banks adopted consumer friendly practices and lowered interest rates such that home loans were now more affordable and serviceable. This made hundreds of aspiring Indians queue up outside banks to fulfil their dream of an own house. Availability of affordable home: Cashing in on this new-found aspirational trend several developers seized the opportunity to provide a new wave of affordable homes in the country. As supply increased, there was hardly any case for demand to slow down. The great Indian middle class was happy to consume the available inventory.

2. The age of liberalization: Post 1991, India entered a different era with not just the economy but people seeking greater freedom and flexibility. An own home gave the new-age Indians greater freedom and a sense of achievement like none and further fuelled the affordable housing phenomenon.