Affordable housing refers to housing units that are affordable to that section of society whose annual household income is below the median. Although, different countries have defined ‘affordable housing’ differently, yet the universally accepted definition has remained the same. In other words, affordable housing should address the need of owning a house to the lower and middle-income groups.
Affordable housing is a key issue in developing countries wherein the market price is relatively higher than the buying capacity of a majority of the population of the nation. For this reason, such nations come-up with schemes that are dedicated to constructing affordable houses.
India, a developing nation, has framed the Pradhan Mantri Awas Yojana (PMAY), which works towards building houses for the lower and middle-income group. For this, the government of India is taking measures along with many developers and public-private partnerships throughout the country. The Indian Government has set a target to construct 20 million affordable houses by 31st March 2022.
The Ministry of Housing and Urban Poverty Alleviation has explained affordable housing on the basis of size, income, price and affordability.
Given below is a detailed explanation for the same:
For the Economically Weaker Sections (EWS) of India, affordable housing means a unit of 300 to 500 sft with a pricing below Rs. 5 lakhs. For this, the household will have to pay Rs. 4,000 to 5,000 as EMI (equated monthly instalments). In this case, the income vs expenses ratio should be 2:3.
For Low Income Groups (LIG) of India, affordable housing means a unit of 500 to 600 sft with a pricing between Rs. 7 lakhs to Rs. 12 lakhs. For this, the household will have to pay Rs. 5,000 to 10,000 as EMI. In this case, the income vs expenses ratio should be 3:4.
For the Middle Income Groups (MIG) of India, affordable housing means a unit of 600 to 1200 sft with a pricing between Rs. 12 lakhs to Rs. 50 lakhs. For this, the household will have to pay Rs. 10,000 to 30,000 as EMI. In this case, the income vs expenses ratio should be 4:5.
Having said this, the Reserve Bank of India (RBI) has defined the cost of affordable residential property as below Rs. 65 lakhs in metro cities and Rs. 50 lakhs in non-metro cities. Earlier, the limit was up to Rs. 25 lakhs in metro cities and Rs. 15 lakhs in non-metro cities. According to the central bank, the definition is based on the loans given by banks to people for building a house or buying flats.
In Bangalore, Swarna Griha is building affordable apartments in Tumkur. The group is working to provide homes to the underprivileged and weaker sections of society, in line with the Indian Government’s vision of ‘Housing for all’ by 2022. These apartments fulfil the needs like modern, amenity-based, secure and affordable homes to targeted sections of society. These houses are built as per the quality standards of constructing a house and are safe and secure for the residents. Swarna Griha’s subsidized houses in Tumkur have excellent connectivity and proximity to Bangalore city. These homes are the perfect answer for all those looking for affordable luxury that comes with all the amenities of an integrated residential project.