Raise Ceiling For Affordable Housing to 65 Lacs - Developers

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Onion Kachoris go well with chai, while also being a great tool to understand how rising construction costs are pushing real estate developers to do the unholy - raise housing prices. 

Ceilings Have To Shatter

Though the hide-and-seek game of Covid has thrown plans out of whack, rising vaccinations, low mortgage rates and developer incentives have been driving steady growth in housing demand, more so in the affordable and mid-segments. 

But rising demand means every sale with a maximum price tag of INR 45 lacs - to qualify as affordable housing - is creating financial stress for builders and limiting options for the homebuyer. 

Real estate developers have thus urged the government to revise the price ceiling for affordable houses to INR 65 lacs from the present INR 45 lacs, due to the cost of steel, cement and other construction materials going up substantially. 

Word On The Street

🎙 Ashok Chhajer, MD, Arihant Superstructures, said to the press that the cost of construction has increased by 50% in recent times and criteria for affordable housing needs an upward revision ASAP.