smart city

A turn on mega projects worth Rs. 4 lakh crore are for developing smart cities and towns to provide “Housing for All” for next seven years besides all the proposed amendments in real estate rules which was marked for the year 2015 in the urban development sector.

The central government has also approved many amendments in the Real Estate Bill, 2015 (Regulation and Development); with various provisions for depositing 70 percent of the real estate projects cost by the real estate builders into escrow account and fine or punishment for violations of the proposed real estate laws. However; the main aim of amendments is to protect the interest of the buyers and encourage the investors and buyers to show more interest in the real estate market by ensuring transparency. Apart from that the other major reform was to introduce the allocation of central assistance to the Union Territories and States based on the number of statutory urban local bodies and the total urban population besides slum dwellers and number of urban poor in each state.

However; the allotment of the bungalow of late President A P J Abdul Kalam, which is located at 10 Rajaji Marg to Mahesh Sharma, Tourism and Culture Minister was also created a lot of controversy through the efforts of Aam Aadmi Party as AAP was criticizing the move. Apart from that Aam Aadmi Party also demanded that the bungalow of late President A P J Abdul Kalam after his term as President which was ended in 2007 should be converted into a knowledge centre. But M Venkaiah Naidu, Urban Development and Housing & Urban Poverty Alleviation Minister defended the move and allotment of the bungalow by saying that allocation was made as per previous rules and regulations and the the central government had already decided to set up a memorial in memory of late President A P J Abdul Kalam at his native place of Rameswaram in Tamil Nadu.

Ambitious Housing Schemes of Modi Government:

PM Modi, launched his most ambitious schemes such as; AMRUT (Atal Mission for Rejuvenation and Urban Transformation), PMAY (Prime Minister’s Awas Yojana) and Smart City Mission on the June 2015 with a call to promote the planning and development in the country to set of new beginning in urban regions, which could be the key drivers in the economic growth of country. According to reports, 100 smart cities will come in existence in next five years, more than 500 cities will be developed under AMRUT scheme and PMAY scheme will aims to construct two crore houses in urban areas in the duration of next seven years under “Housing for All” scheme. While summing up new initiatives, Naidu told PTI; “Year 2015 is very significant the sense as we have set up urban planning in the country under many new different schemes. However; considering the provisions under AMRUT, Housing Mission and Smart City Mission there are new conscience on the part of urban local bodies which could be for effective for planning and execution”.

The introduction of competition for selection of Smart Cities Mission is first of its kind in the allocation of resources and funds. Apart from that government is also taking the consultation for prioritization and planning of the projects from normal citizens at city level and it is mandatory under the new urban initiative which is launched in 2015.

Affordable Housing

According to data of 12^th, 5-year plan (2012 – 2017), the housing shortage in India has reduced to 18.78 million, but according to experts data collection is questionable, and we can understand the data is not so correct because we belongs from same society and know the situation of affordable housing in India.

More than 80 per cent Indians still find it hard to fulfill the desire to own a home in affordable price. This is the era of luxury items such as; Tvs, laptops, smartphones, and other items, they all are now in the reach of common man and are affordable, but when it comes to houses situation is reserve as houses are getting more and more expensive day by day. In Indian most of the people still living below average standard homes, but it doesn’t mean the average income of Indians is reducing, however the housing prices have been increasingly exponentially. For affordable housing there is huge gap between supply and demand and people have less choice when it comes to living standards. In some cases developers are asking the peoples to queue up and take part in lotteries, and according to that they will sell the home to winners only. As per the Ministry of Housing and Urban Poverty Alleviation, Affordable housing constitutes living units due to that his equated monthly installments (EMIs) should not be more than 40% of the owner’s gross monthly household income. Whenever the homes priced between Rs. 25-45 lakh are still referred as the affordable house by builders. The exact definition of affordable housing should be the main concern, as there is huge shortage of supply in this segment.

If the current backlog is maintained, then by the end of 2020, India will be facing an extra demand of more than 30 million additional homes; however 80 per cent shortage is still concentrated in the economically weaker section (EWS) of the Indian population. As per the 12th 5-year plan (2012 – 2017), Housing shortage in country is reduced by the 18.78 million, but according to experts data is not real and still questionable and current government departments continue to argue on the exact figure. In present the land is not easily available asset in India, in most situations acquisition of a plot for housing development is time-consuming and highly expensive process because of various charges apart from land cost. Due to rise in population and rising urban density, in past few years the demand for land has also seen an exponential rise.

If the person is from economically weaker sections and look for properties, so it’s difficult for them to deal with finance as well as they are also finding it difficult to meet the transport, water and power supply systems, sewage treatment lines and other conveniences. In India, land prices are much higher than the rate which is compatible with the development of real estate, in past few years there has been rise in cost of construction and construction material, which directly reflecting in the housing prices and the other issue is the lack of infrastructure. The majority of Indian home seekers is moving into first, second and third tier cities to earn the livelihood. These in respect to that there is no difference from home buyers from the middle or upper middle class. These are the some basic things for which any home buyer look while purchasing, no matter the construction is done by government of self-governing bodies of real estate developers. There is still lack of affordable homes in India and government need to do the hard work in real estate sector, not the main question; Is PM’s Housing for All scheme will work?, well the answer is in future and let wait for the best for the residents of India, who want to own the home.