Affordable housing what is it

According to tax and investment experts, a home buyer needs to pay GST at the time of buy but it's important for them to know what an affordable house means as per the GST. Never miss a story! Stay connected and informed with Mint. Download our App Now!! It'll just take a moment. Looks like you have exceeded the limit to bookmark the image.

Affordable housing in rural and urban housing sector need differently tailored policies as land is the main constraint in the urban areas. As our country is going through an economic transition characterised by demand for better housing facilities, there is a widening gap between the demand for houses and its availability. Both in the urban and rural areas, there is lack of proper housing facilities. As per the Report of the Technical Group on Estimation of Urban Housing Shortage , there is a huge gap in demand and supply of urban housing both in the urban and rural areas.

According to the Technical Group Report, two low income categories — economically weaker sections EWS and low-income group LIG accounted for 96 per cent of the total housing shortage in India.

Given the need for houses and increasing trend of urbanisation, housing facilities in urban areas has to be expanded. In the context of the estimation of affordable housing needs, housing shortages are calculated Planning Commission methodology by adding:. Hence, it means that there is obsolescence of houses , congestion factor and homeless factor in estimating new housing demand. Recognising the importance of providing housing to the poor sections, government has initiated a group of measures over the last fifteen years.

Later, the government has set as the target year to realize this objective by making specific initiatives for the promotion of housing. For the urban poor, the government target is to construct 20 million houses by March 31, under Pradhan Mantri Awas Yojana-Urban, that was launched in June According to the Ministry of Ministry of Housing and Urban Affairs, as on January , nearly 69 lakh houses were approved while The PMAY — Gramin was launched in to construct affordable houses in rural areas and complete it by date extended.

As on end January , nearly 1. Construction of affordable housing under the both programme goes well and the government has constructed nearly 1. Prior to , the limit was up to Rs 25 lakh for metros and Rs 15 lakh for non-metros.

The central bank's definition is based on the loans given by banks to people for building a house and buying flats. What Constitutes Affordable Housing? April 07, Sunita Mishra. To stay tuned with real estate updates Daily Weekly.