Is Affordable Housing Truly a Priority?
A pertinent question circulating currently revolves around the genuine commitment of policy planners and stakeholders to affordable housing. Discussions surrounding affordable homes have become commonplace, even among individuals not traditionally involved in the real estate sector. However, the definition of "affordable" remains ambiguous.
Affordable for Whom?
A crucial consideration is who exactly benefits from these supposedly affordable homes. A significant portion of the population, around 44%, earns between Rs 8,500 and Rs 40,000 per month, encompassing both formal and informal sectors. Are these housing options genuinely designed for this demographic? Furthermore, the increasing reluctance of banks to provide home loans exacerbates the affordability challenge. Arun Mohan, a senior advocate and author, delves into these issues in his latest book, "Affordable Housing: How Law and Policy can make it possible."
Key Areas for Improvement
According to Mohan, three key areas demand immediate attention to address the affordable housing shortage. Firstly, a greater supply of genuinely affordable flats is essential. Secondly, access to bank financing needs substantial improvement. Thirdly, the availability of land specifically designated for housing development presents a significant hurdle. A prevailing crisis of confidence also contributes to inflated prices and a constricted market. Mohan tackles these concerns within his book, examining them through a critical lens.
Proposed Solutions: Certifying and Guaranteeing Performance
Through in-depth analysis, Mohan proposes the establishment of a "certifying-cum-performance guaranteeing company"—a regulatory body tasked with overseeing builders and issuing a "wide-guarantee certificate" to buyers. This certificate would assure buyers of the delivery of their purchased property, fostering trust and encouraging investment from both buyers and financial institutions. Such a guarantee addresses reluctance amongst buyers to commit funds, and amongst financial institutions, to provide financing, thus creating a more secure transaction for all stakeholders. This regulatory intervention would bolster confidence and potentially revitalize the market.