Influence of Changing Real Estate Scenarios on Affordable Housing in India

It has been observed that the supply of housing and their associated prices have been a consequence of the existing scenario of real estate markets. In fact, housing and real estate are two interdependent sectors. The growth in one sector impacts the other. However, in the mutual profit-making process, the affordability component is often neglected. It is of relevance to note that in the post-economic meltdown in 2008-2009, the focus of the real estate developers has shifted to increasing affordability in the housing sector. With the launching of the "Housing for All by 2022" campaign, many private developers have launched many projects across Indian cities, primarily focusing on the affordability segment. The main objective of the paper is to identify and analyze the various factors responsible for the shift in the market thrust to affordable housing in the recent years. It presents the driving and limiting forces which influence the interest of the developers in mass-scale housing supply. It can be concluded from this study that the element of affordability in housing has only recently acquired attention of the real estate developers due to shifting market scenarios and currently, it forms one of the leading areas of investment due to its tremendous business potential, now and in foreseeable future.