In the last decade, Gurgaon’s population amplified due to extensive urbanization and industrial evolution. The city has attracted a lot of working-class people from Delhi due to the availability of affordable housing. Gurgaon offers a wide range of affordable housing projects as compared to Delhi and other major parts of the National Capital Region. Another major factor for the massive migration of crowd is the abundant availability of jobs in the city.
Once upon a time, this Millennium city was an economic wasteland. And today, it is widely known for its landmark skyscrapers on an international platform. Under the Pradhan Mantri Awas Yojana, which directs at “Housing for All” by 2022, it has been stated that there is a requirement of 1.2 Crore urban homes and another one Crore in rural areas have to be built. Let us know about the affordable housing segment of Gurgaon, now known as Gurugram, in details.
· Affordable Housing in Gurgaon
· Present Situation of the Market
· Future Trends & Forecast
Affordable housing scheme introduced by Shri Narendra Modi led NDA Government played a dominant role in shaping the real estate industry of India. The slow market of real estate started to show the signs of revival, which sent positive ripples all over the country. Gurgaon as a real estate market was undoubtedly performing well due to the continuous migration of people from Delhi to find a home in a less congested area and at an affordable price. However, after the introduction of the affordable housing scheme, Gurgaon real estate industry witnessed a significant growth.
Due to ample obtainability of affordable housing projects in Gurgaon, the city started to act like a magnet by attracting investors and end-users alike. Unrealistic high prices of the apartments are also going down as affordable housing in Gurgaon has fuelled the growth of the real estate industry of the city. Eminent real estate developers are now giving paramount focus to affordable housing segment of Gurgaon. Individuals seeking to invest in this segment of the market can explore all the available housing options in the belts of Sohna Road, Southern Peripheral Road, and Dwarka Expressway. Sohna Road has an amazing collection of new affordable housing units in Gurgaon. In the midst of all these, OSB Group has launched one of their affordable housing project – OSB Golf Heights in Sector 69, Gurgaon. The residential project is a mere 1 km away from the Sohna Road and will be available for possession by the year 2022.
At present, many real estate companies are offering a myriad of schemes to woo prospective homebuyers. A report by the Economic Times Wealth revealed that after the entry of affordable housing scheme, the share of the real estate to India’s Gross Domestic Product (GDP) increased to 6.3% in 2017 from 5% in the year 2013. Along with this, the real estate sector gave returns of 10.9% as per the report of Resurgent India.
New affordable housing projects in Gurgaon will prove to be supportive in contributing to the growth of the city’s real estate. Currently, the locality has a high capital appreciation value and also the rental yield seems to grow over the years. It has been predicted by industry experts that within 5-6 years, property prices will increase further. Moreover, this will benefit all the property owners of Gurgaon.
The government of India has liberalized the Foreign Direct Investment (FDI) norms in the real estate and construction sector, which has been proved to be one of the most significant economic policy decisions for the exponential growth of this sector. Many international real estate companies are now looking forward to invest in the construction sector of India, especially in the affordable housing segment due to these new guidelines issued by the Government.
The year 2017 remained dubious for the real estate developers are homebuyers opted to stay cautious, in the face of fall in housing prices. But it has been claimed by the industry experts and real estate developers that 2020 will be a turnaround year for real estate market in India due to rapid growth in construction and sales of affordable housing projects. It has been stated that real estate’s contribution towards the GDP in 2020 will reach 11% from the current 6.3%.
In 1990, Haryana was the 1st state in the country which encouraged private real estate developers for conducting business. Introduction of stringent acts such as RERA and GST performs as an entry barrier for frauds and scams. Thus, it can be said that these policies instilled confidence and faith in homebuyers.
The increasing demand for housing and the interest to invest in affordable housing segment will make the year 2018-2019, the season to invest in properties. Gurgaon as a micro-market is expected to perform tremendously well considering the current growth rate in terms of capital appreciation, rental yield and demand & supply. This year will change the future of India’s real estate industry.