The truth behind Affordable Housing

Affordable Housing is the new buzz mantra today in the reality sector. All developers are making hay in recession with the so called affordable housing.

I have been looking for a budget house for more than a year in Delhi-NCR. And not surprisingly, I could not find anything within my budget, thanks to the over hyped prices in NCR. It was almost impossible for a common man to purchase a house till these so called affordable houses were launched.

Many projects started in Noida of reputed builders like Jaypee, Amrapali, Divine Meadows, 3Cs and many others.

(I will write a detailed review of each of these projects in detail in my upcoming blogs. Here, I will cover the general points.)

Few questions immediately crossed my mind:

• Are these really a value for money?
• Is the consumer a real winner?
• Should we really go for it?

It was difficult to believe getting a 2/3 BHk house in such an interesting price. I was sure there is something fishy. I was also excited to see a 3BHk house within 30-35 lakhs and the next day I started my research and the results are as under:

1. The basic per sq ft rate has not changed much. To reduce the house cost, either we can reduce the rate per sq ft or the house area. The developers have opted for the latter. The basic sq ft rate have fallen but not to an extent to make it affordable for the common man. Check out the latest property rates in Delhi NCR.

2.It is only the house carpet/super area that has reduced not the per sq ft rate. We used to have a decent 3BHk in 1500-1800 sq ft range and a 2BHk in 1000-1300 sq ft area. But now, the developers are giving 3 BHk in 1000-1300 sq ft Area. Effectively, you are getting the area of 2 BHK in the name of a 3 BHK flat. Similarly, a 2 BHK now comes within 500-800 sq ft area.

3. The basic amenities in the new houses will be missing. The quality of material/fixtures is degraded.

4. All rooms are around 10*10 or 10*11 in size.
5. It is true that the common man has now an option to buy a 3BHk house in his range but he has to make a decision if he is comfortable living in a 10*10 or 10*11 size rooms. Some builders have even included the wardrobe space in the room space.
I personally don’t think it would be wise to go for this option as I prefer living in a house and not in a cage. I think the govt. should have forced builders to reduce the basic prices instead of the house area. A person buys a house to live comfortably and this is the basic requirement that is missing in these affordable housing.The end consumer has to decide whether to fall in this myth of affordable housing.Affordable Housing might be affordable but definitely not COMFORTABLE.