We have seen in the past couple of months that the government of India has been up on their toes with various policies and schemes which will help in the growth and development of India. There have been many policies which were introduced in the real estate sector to revive this industry and take it to new and better levels. One such scheme and policy was ‘housing for all’ where affordable houses would be provided to the low-income group people.
It has been almost two years now since the policy was introduced in our country and the people and looking with hopes to the government as well as the private entities for providing a roof to all the people.
In the current scenario, people live in only two ways, one by owning a house of their own and the other is by renting a house. With more affordable houses in the future and the cost of EMI beating the monthly rent, then it’s obvious that people will go for buying rather than renting. This will lead to a great downfall for renting housing.
For the past so many years, the sector of renting has always provided great support to the real estate sectors and has also contributed greatly to this sector throughout the years. But the affordable Laneway house policy is going to be a great obstacle for the growth of the rental housing sector. This sector is still in its growing phase, the commercial rental market is yet to catch pace in our country. The increase in demand for affordable housing will adversely affect the business of rental housing. However, whichever housing (affordable or rental) experiences growth, the real estate sector will get the benefit.
The government of India is introducing policies for both the affordable as well as rental housing. The government is doing this is to boost and increase the overall housing demand in the real estate sector. The people are desperately waiting for the affordable housing scheme to function so that everyone can afford a house of their own. Hence no matter if rental demands fall to some extent, in the end, the real estate sector wins!