Budget for two BHK flat in developing areas has gone up to Rs25 lakh.
The definition of affordable housing has undergone a major change in the first decade of the 21st century. The realtors blame change in policy and sky-rocketing land prices for higher property prices. In the last decade of the 20th century, residential properties in range of Rs5 lakh to Rs7 lakh fall under category of affordable for various income groups. Now, the budget for two BHK flat in developing areas has gone up to Rs25 lakh.
The increase in the number of working couples, and cheaper home loan interest rates, have forced the service class people to stretch their budget to buy their dream homes.
As a result of that, a majority of the realty buyers feel that property prices in the city are beyond affordability. Low cost housing is available only in areas having poor infrastructure services and places which have an industrial background and are thus unappealing. The real problem is that affordable housing is not happening where it is needed the most. As a result, the urban sprawl is expanding.
Suresh Patel, president of Gujarat Institute of Housing and Estate Development, said that according to the national policy, the population density should be 600 people per hectare. In contrast to that, the Gujarat government's policy allows population of around 400 people per hectare resulting in shortfall of houses in the city that leads to higher property prices.
Although there is supply of residential units in the city, there are not many realtors who wish to launch affordable housing schemes.
There is a huge demand for 1 and 2 BHK flats as the buyers' capacity has not increased to match the pace of rise in property prices. However, there are not many schemes of such type of houses launched in the city.
Pavan Bakeri, managing director of Bakeri Engineering & Infrastructure Ltd, said that affordable housing used to be available in the centre of the city, which has now shifted to the outskirts. Moreover, the area of the flat has also been reduced to match the price that fits the budget of the middle income group.
Earlier, 2BHK flats were available in size of around 1200 square feet, which has now been reduced to around 850 to 900 square feet, he said.
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