Covid 19 Opened Doors for Affordable Housing

Kishan Thakkar K

Quality, affordable housing is a key element of a strong and secure Iowa.

Tom Vilsack

It is no doubt that the pandemic has made people realize how essential it is to have a home of their own. Given the recent emphasis on affordable housing, it is important to examine the impact of this pandemic on the same.

In a developing country like India, the majority of the population is unable to buy houses because of the high market prices. 

The Chairman & M.D. of the organization, Shishir Baijal, said that the pandemic has fuelled the concept of homeownership. He said “The ongoing festivities have complemented the already positive outlook that homebuyers had exuded over the past year or so. The same is reflecting on the property registration numbers, wherein we are seeing best levels in consequent months of September and October.”

Before we discuss affordable housing, let’s define it.

As per the definition, Affordable housing refers to housing units that are affordable for those with income below the average household income.

Depending on the city, the definition differs. According to the most recent orders, a 60-square-meter house in a metropolitan city with a value of up to INR 45 lakh (approximately USD 60,000) will now be designated as affordable housing. For non-metropolitan cities/towns, the limit has been reduced to 90 square meters and a value of up to INR 45 lakh.

According to the Technical Group on Estimation of Urban Housing Shortage (2012), there is a significant gap between the demand and supply of urban housing in both urban and rural areas.

Few Factors That Influence a Homebuyer’s Decision

The factors that influence the decision of buying affordable housing primarily include an increase in value of owning a homestability of jobsreduction in home loan ratesand government policies and various policies. The Covid 19 forced many organizations to reassess the use of commercial infrastructure and move from a traditional office setup to a more flexible working environment such as working from home.

This led employees to spend a large amount of time at home and became a supporting factor in increasing the tendency of possessing a home!

Click here to read our blog on Status of Housing in India

How Our Government is Encouraging the Developers in the Affordable Housing Sector?

Several incentives, including subsidies, tax breaks, and, most importantly, institutional funding, were made available to developers. In addition, the Ministry of Housing and Urban Affairs has announced six public-private partnership (PPP) models to encourage private sector developers to enter the affordable housing market.

Given the increased demand for housing and the trend of urbanization, housing facilities in urban areas must be expanded. With current rates of urbanization, around 40% of the country’s population is expected to live in urban centers by 2030.

There have been a number of measures taken by the government over the last fifteen years, recognizing the importance of the provision of affordable housing. The National Urban Housing and Habitat Policy (NUHHP) of 2007 established an objective of affordable housing for all as a fundamental goal. Several measures have been taken by the Reserve Bank of India (RBI) to give a boost to this sector over the past few years.

However, there are still many challenges that developers face on the ground that prevent them from entering the affordable housing sector.

The Following Are Some of the Challenges Involved in the Development of Affordable Housing

Lack of suitable low-cost land within the city area limits, Tedious and time taking approval process and multiple clearances, lack of access to low-cost credit for construction finance, low-profit margins, etc.

Below Are Some of the More Challenges Faced by the Developers,

  • Expensive Land for Affordable Housing Projects
  • Lack of Availability of Urban Land
  • Excessive control on Development of Land
  • Lack of marketable land parcel
  • Titling issues and lack of information
  • Rising threshold of construction
  • Regulatory constraints
  • Lack of clarity in building bylaws

“So, we’re saying, if we can give developers and builders incentives to cut down on the regulatory barriers that are faced in this country, then we might be able to address the needs of affordable housing.”

Alphonso Jackson

Role of the Private Sector

The private sector must embrace innovative technologies to finance land acquisition, title acquisition, urban infrastructure development, affordable housing construction, and subsequent operation and maintenance.

In developing countries like India, it is difficult or impossible to raise funds from capital markets, the private sector needs to work with national or state governments.

Impact investing in affordable, energy-efficient housing can help to bring about positive social change as well as financial returns.

Investing in sustainable design concepts and constructing energy-efficient buildings can help optimize space and reduce energy costs.

Developers should remain informed on innovative construction techniques such as 3D printing and prefabrication, which are rapidly evolving and may soon enter the mainstream.

Developers should collaborate with educational institutions to increase research investment and encourage skill development.

In the End

The policies supporting the affordable housing segment with lower interest rates and attractive pricing offered by the developers are likely to increase the demand for affordable housing in the upcoming days. This will revive this segment and turn your dream of owning a home into reality! 

Staying informed and discussing with experienced & experts while making a decision is an ideal way of making a great deal. All you have to do is contact Roodland, which provides the best real estate services.

For any queries and suggestions regarding capitalizing on student housing, contact us at and discuss all of your options with us!

Consider sharing with your friends, family, and relatives, if you have found it useful.


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