Sunday, 15 April 2012

High property rates put homes out of reach

The housing requirement for the lower and middle income groups is around 40 per cent, but with the high rates and the unavailability of small houses, decent and legal Affordable homes in Mumbai has remained an unfulfilled dream for many.
Using the general rule of thumb that one can afford a home no more than four times one's annual income the formal housing market only caters to the needs of those earning Rs 2 lakh or more per annum. An entry-level home in the Pune metro area starts in the range of 8 to 10 lakh. The problem of lack of affordable housing for those who want to buy but have meagre or modest means, is compounded by the virtual lack of affordable housing on a rental basis other than in slums for those who do not have either the future stability or the down payment required to own a home," the report states.
 The government is soon expected to finalise the 2.5 FSI policy for Pune and Pimpri Chinchwad. This policy will also be applicable to all MHADA lands and colonies. It is aimed at creating new affordable houses in Mumbai properties.
Another important policy that is set for approval is the Joint Venture with private developers, which will also help in generating housing.

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