Low cost, high return

The recent offer of 5010 homes, which the DDA (Delhi Development Authority) has more than 7.5 lakh subscribers, of which 5.67 lakh on deposits (1 dwelling per 100 participants). Affordable prices and easy credit led people paid in hordes. This is just one of many programs that are launched to support local authorities in urban cities.

But these are insufficient to meet the demand for housing in India. Although a small part of this question is addressed by private builders and housing financial institutions, which was limited mostly to meet the requirement of MIG (Middle Income Group) and HIG (High Income Group) sectors. What is left unattended, the requirement for low cost housing, known as EWS (economically weaker sections) and LIG (low income) sectors? It is paradoxical that the current financial crisis comes as a blessing for the Indian economy, especially for the needs of ordinary people in the real estate sector. This is because it finally brought the focus back on the market; there is a need for housing "low prices" or "affordable" segment.

In the last decade, there is a huge spurt in private real estate development area. The ready availability of credit and general performance of the economy saw middle-income households to their dream of homeownership. But soon, very light, poor regulation and a poorly implemented land use speculation and private developers began to seek higher premiums.

The generally conservative approach to service housing requirement has been replaced by a much more demanding, with individuals to commit themselves to a higher price than the band could afford. The combination of credit facilities (such as a housing loan with a personal loan) was used to cover the costs. This will further increase the price and the margin of 3 years, the prices skyrocketed to asset price bubbles in real estate. Then come to the financial crisis. As the crisis spreads, its impact on Indian economy, although the interest rates reduce the availability of credit is hard to reduce costs, and most real estate developers have begun to search for a buyer for the inconvenience premium apartments. This forced the developers to return to the world of low housing costs. Therefore, the claim that the current crisis it is good to ensure that India does not get in the fall, which can lead ...