Besides having a multiplier effect, affordable housing helps to trigger the national economic growth  With the International Finance Corporation (IFC), a member of the World Bank Group, intending to develop big affordable housing projects in the country, the Indian real estate sector, low-cost housing segment in particular, has much to cheer. Till now, segments such as trade finance, micro-finance, micro-insurance, renewable energy (such as wind and solar energy) and infrastructure development (including power) have attracted IFC in India.
According to Paolo Martelli, director (South Asia) at IFC, the organisation has been holding discussions with various reputed private property developers, corporate groups and housing finance companies (HFCs) to help materialise its plan. Mr Martelli is very optimistic and expects at least one such project to be developed over the next 6 months.
“In the view that our country currently suffers from a huge housing deficit of around 25 million units, IFC’s initiative is undoubtedly commendable. Besides, contributing to the growth of the low-income housing segment, the move will also help the realty industry to scale new highs,” opines Anuj Sharma, a realty analyst based in Noida.
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Further explaining the IFC’s role, Mr Martelli says that the organisation is trying to show the Indian market how the concept of affordable housing has been handled successfully in other countries across the world. To justify this, he cited the example of Mexico. This North American nation has been developing cities at a time, comprising 15,000-20,000 dwelling units worth around US$7,000-15,000.
In a note of advice to domestic developers as well as HFCs, Mr Martelli said that they should restrain from speculating the land price to make the project viable.
Speaking on IFC’s keenness to develop affordable housing projects in the country, Bhim Yadav, CEO of Falcon Realty Services Pvt. Ltd (FRSPL), says, “This will play the part of a much-needed catalyst in the segment’s growth. Besides, it will open avenues for not only capital but also global expertise into real estate development in the affordable housing segment, ensuring quality construction, design and architecture adhering to international standards.”
In view of the massive housing shortage, Mr Yadav says, “IFC’s endeavours will help bridge the demand-supply imbalance to some extent and thereby bring some homogeneity in ownership of a house in this income group.”
FRSPL, a pioneer of eco-friendly real estate projects in India, has collaborated with the Rajasthan government to develop low-cost housing units under the public private partnership model. These units will be a part of its Global Eco-City project, which will come up at Kotkasim in the Alwar district of Rajasthan.
Besides having a multiplier effect, affordable housing helps to trigger the national economic growth, opines the IFC director.
IFC plans to follow its three-pillar strategy of comprehensive growth, regional integration and climate change for India.
Jeeta Bandopadhyay |
