Affordable Housing

Under the Affordable Housing Policy 2013 by HUDA, apartments of a pre-defined size are provided at a pre-defined rate and a pre-defined time. According to RICS, the term ‘affordability’ under this policy means the provision of ‘enough shelter’ which ensures overall security. Affordable Housing fulfills those needs which are not met by the open market. To understand it clearly, affordable housing operates under three parameters:

a) Income Level

b) Size of Dwelling

c) Affordability

Affordable Housing:

According to the US Department of Housing and Urban Development, a household should not spend more than 30% of its annual income on housing. Families who pay more than this amount face difficulties in fulfilling the basic necessities such as food, clothing, transportation, medical care, etc. They are forced to spend a big amount on purchasing a basic house thus becoming cost-burdened. 

However, this policy varies under various segments such as the size of the dwelling and comforts. A luxurious and higher-than-average level of comfort requires a huge sum of money. Then the question of affordable housing is left unanswered. Thus these factors should also be taken into consideration.

The maximum areas allotted to such projects are 300 Acres For Gurgaon, Faridabad, Panchkula, Panchkula Extension, and Pinjore-Kalka, 150 acres for Sonipat, Panipat, Karnal, Sohna, and 75 acres for the rest of the developmental plans. Talking about the price, The maximum allotment rate for the apartment units approved Under the Affordable Housing Policy Gurgaon Would Be Rs 4,000 per sq ft of Carpet Area in the development plans Of Gurgaon, Faridabad, Panchkula, and Pinjore-Kalka, Rs 3,600 per sq ft in the development plans of other high potential towns and Rs 3,000 per sq ft in the low potential towns. Also, according to this policy,  the developer is bound to maintain the project free of cost for the first five years.

Before dealing in any property built under the Affordable Housing Policy, it is convenient to be aware of the know-how of this policy so that to avoid any problems in the future. This policy only intends to vitalize planning and fulfillment of Group Housing Projects and to maintain a balance between the timely delivery of projects and ease for the buyers.