The concept of affordable housing is looking at a paradox. At one hand, we have our PM incorporating affordable housing as a major part of his recently launched policy Housing for all whereas on the other hand, we have various reputed developers abandoning their affordable housing projects in the mid way at the first sign of troubles. Rapid manifestation of urbanization has led to a surge in the number of people migrating from rural areas and villages to towns and metropolitans. The obvious imperative is that this migrating population would need a roof over their heads. The concept of affordable housing essentially caters to such an influx. But all this is easier said than done.
Affordable Housing projects are designed keeping the customers pertaining to a budget crunch stratum at their focus. Such projects easily garner much attention to due the low prices, but the delivery of such budget abodes is a daunting task for the developers. The common mistake the developers make is of getting their sums wrong by ignoring a few important parameters. Affordable housing projects offer a very low profit margin as compared to the other projects and each project usually takes on an average a time span of three years. This is a large time taken with respect to a fluctuating economy. The inflation and other economic factors generally lead to an overall increase in the construction cost while the profits remain crunched up.
This had led to many developers dropping their projects soon after their launch while still many desert them after a considerable amount of construction has taken place. But the times are expected to change. The urban development scheme launched by honorable Prime Minister Modi has laid emphasis towards creation of more affordable housing projects. The genius of the scheme lies in the encouraged camaraderie between government and private players to achieve the objectives. This will give a fillip towards realizing the dream of housing for all.