Despite
the availability of finances, affordable housing in the Country is suffering from supply constraints. According to R.V. Verma Chairman and Managing
Director, National Housing Bank (NHB).
Unofficially
homes priced between Rs. 5 Lakh and Rs. 12 Lakh are called “affordable housing”
and are categorized into Lower Income Group (LIG) and Economically Weaker
Sections (EWS) houses.
According
to Verma, Developer’s focus has primarily been on the Middle Income and High
Income Group Homes. As a result, while Housing Finance Companies were ready to
help low income households, supply of such homes is restricted.
He
believes that the Developers have not built the right business model yet. That
needs to be done as soon as possible. Urban Housing shortage is estimated at
nearly 18 million units (wit 95 percent in LIG and EWS categories). Despite the
Builder community being well geared to cater to the needs of affordable
housing, they fail to do so because of lack of confidence with the policy
makers. The Developers are hoping for a scaling down in interest rates was
unrealistic and instead they should opt for interest subsidy schemes of the
Centre and State.
The
NHB was looking to raise nearly, $300 million (Rs. 1,500 Crore) from the World
Bank. A final decision in this regard is expected by March 31.
The
loans will help low-income households by way of credit to HFC’s on the
condition that it is used only to build houses. NHB, the apex Bank for regulating
and supervising Housing Finance Companies, will raise nearly Rs. 6,500 Crore by
the end of June next year. The amount will be raised through tax free bonds and
rural housing funds. It has already raised Rs. 8,000 Crore so far this fiscal
year. NHB follows the July-June accounting year.
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