AFFORDABLE HOUSING A NEW BUZ WORD: LACKING WILL

In the past few month there has been a huge damage to the real estate sector all over the world. Almost all the developers have stopped their projects due to liquidity crisis and poor market sentiments. Big real estate giants like DLF, Utitech etc. are not able to ensure delivery of the housing/ apartments as per their committments and are facing rash of the allottes. The real estate market scenario has lost the opstimism of going up in the near future. The global economic crisis, strories is going on lay off and news of anticipated further southward movement of prices along with the rental in the mega cities have further dampen the chances of improvements. The sorry state of affair is that builders and developers are not able to complete the on going projects and payments made against new projects to authorities is in limbo due to violation of allotments of land. sound realty player BPTP has already lost EMD by Noida authority being defaulter in paymnents.

In the past few month there has been a huge damage to the real estate sector all over the world. Almost all the developers have stopped their projects due to liquidity crisis and poor market sentiments. Big real estate giants like DLF, Utitech etc. are not able to ensure delivery of the housing/ apartments as per their committments and are facing rash of the allottes. The real estate market scenario has lost the opstimism of going up in the near future. The global economic crisis, strories is going on lay off and news of anticipated further southward movement of prices along with the rental in the mega cities have further dampen the chances of improvements. The sorry state of affair is that builders and developers are not able to complete the on going projects and payments made against new projects to authorities is in limbo due to violation of allotments of land. sound realty player BPTP has already lost EMD by Noida authority being defaulter in paymnents.

Developers are adopting different tactics to allure the buyers by offering different types of incentives,and disocunts on booking.The other major tactics adopted by the developer is Buz word affordable housing for thier on going as well as proposed projects.The term affordable housing is very vague practically and may very for person to person.High earning household can have high affordability and low earning household can have lower affordability.The affordability varies from city to city in genral and household to household.In general the households living in maga cities e.g. Mumbai, Delhi NCR, Hyderabad, Banglore, kolkata will have higher opportunities and better income than households ataying in second and third grade cities e.g. Kanpur, Saharnpur, Gorakhpur etc.
  
 The serious though is to be made by the developers to catch the pulse of the market and attract buyers.The evloution of the Nano Car by TATA's has thrown a challnge to create housing which is really meant with the title "Housing for all" is really affordable by the masses. The government authorites have started various housing schemes for creation of affordable housing but severely lacking will. 

Are the efforts being made by government and developers are really workable to make housing within reach and affordable. PropertyKoncept Voice feel that efforts has be made more practical by understanding location preferences of the masses, budget, quality of housing, infrastructure provided along with the environs. The basic building materials e.g. cement, steel, aggregates etc. market prices are not within control and prices remains to be higher side. The flactuation in the Steel prices. cement and other building materials should not fluctuate much. If rates of basic building materials are not being controlled along with the land prices and builders profit margins are not controlled how housing can be made affordable for all?
 
    The infrastructure development even being pooling agenda of BJP is the major catalyst has increased the demand of the construction material, whose fluctuating prices are heavily adversly affecting the housing and development projects. In the megai cities like Mumbai, delhi NCR the exorbitant land prices have been a mjor constrain adding substantially towards the cost of the project, further higher construction cost too constitutes a substantial fraction of the total cost of project.

As per an estimate housing sector consumes aroung 55 per cent of cement, the cinsumption in infrastructure is around 35 per cent, the remaining 10 per cent goes into other cement based products. The unprecedented ongoing price hikes of cement have adversly hitting the construction industry.How to control the cost and flactuation of basic building materials can ce afforded by contractors working on government housing and infrastructure projects.If affordable housing is to be created the cost of Materials like bricks, steel, mortar, and machinery to be controlled first.

Government organisations like HUDCO, BMPTC etc. are promoting low cost technologies to make the construction components cost within reach, but most of the researches are lying in the laboratories not coming on the ground. The builders and contractors are also hesitants to adopt innovative building materials and technoligies in their projects to reduce the cost of housing.

ProprtyKoncept Voice feels that the stamp of affordable hoisung means LIG or Janta or sub standard housing is to be removed and more serious brain stroming is required to be done jointly by Government and privatr players.