Thursday, January 9, 2014

An article about “Technological Innovations for Affordable homes”

The Secretary, Department of Industrial Policy and Promotion (DIPPdid not explain how soon development of innovative methods of constructing locost housing would becoma reality but he said that thnext Nano could very possiblhappen in realty

Technological innovationmay enabldeveloperto make low cost housing financially feasible. The DIPP handles the matters pertaining to the granting of patents. It could however not be verifiedif any leading developer filed patent applications on building-innovation.

As developerare being increasingly compelled by the government to set aside a part of houses for the low income group it's to be expected that certain realty players may resort to technological innovation for building homes at a very low cost so that they can obtain a profit at the same time. There is also a possibility of obtaining subsidized land for low cost housing according to a government official.

This means that the next N ano in India could be an affordable home. Some realty players are near to developing innovative ways of building parts of a building in large volumes and transferring those to the real sites. Construction costs could be meaningfully lowered by this and that will make it possible for builders to venture into commercially feasible low-cost housing. An executive of Cushman & Wakefield says that as 70-80% of the demand for housing comes from more will come down, government should roll back taxes" Singh said.

He thinks banks need to lower their mortgage rate for demand to pick up in this sector."Housing and construction sectors are key sectors for revival of economy and the industry needs more funds," he said.

If this industry does not revive then there could be a cascading effect on a lot of industries and it will have a negative impact on the economy. While admitting that demand is much less than supplySingh said that there can be layoffs in the future if the situation continues middlto lower segment and this segment is importantBecause of theconomic slump developers are compelled to consider this segment as it has now become tough going for luxurproducts. Technological innovation alone will not be sufficient and developers have to applthemselveto otheareas so that affordable housinbecomes financially workable.

Singh saithat demand drives prices. He saithat this is a free economy and if demand falls price of property will automatically comdownSingh said he does not think that real estate prices have been over priced at any point of time.

He said it has increased gradually likany other sector and hence it needs incentive from the government to bring down prices. He also said the companhad deferred some of itprojectdue to poor demand. "In hotelsresidential and commercial everywhere deferred because olower demand anliquidity crisis," he said

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