ECONOMIC GROW TH DUE TO HOUSING BY V.BHANU
Thissubjectssets for the analysis of therelationship Between HOUSING , EMPLOYMENT and PRODUCTIVITY.
High economic growth coupled with rapid urbanization and rising middleclass have created considerable demand for housing and housing finance.
FOUR KEY DIMENSIONS OF THE HOUSING FINANCE THAT AFFECT THE MARKET AND HOUSING AVAILABILITY – 1. 2. 3. 4.
Innovative financial instrumentsincluding for informal sector Availability of long-term funding; Affordable mortgagesfor the poor and rural population; and Functional legal, regulatory, and information infrastructure.
First , Large-scale slums and informal settlements that exist in almost all South Asian countries underlinetheurgency of meeting the demand for homes. Thereis a shortage of more than 38 million housing unitsin theregion.
Second, Financial markets aredominated by largebanking sectors for homeloans.
Third ,In some countriesprivate developersdiscover that cheaper housing isactually capable of presenting good commercial opportunities.
Faster reorientation of the building industry to lower-income construction is predicated on two conditions: developer finance and efficient land administration.
Fourth, Mortgageproduct innovation and customization to client needs would makehousing affordable to an increasing number of families. Easing accessto housing financefor low-income, rural, and informal population groups is key.
Housing trends and challenges - Privately rented - Registered social landlords - Local authority - landlords
Gujarat has been one of the leading statesin terms of economic growth for several yearsand has attracted a lot of fresh investments
Gujarat grew by 11% in 2010-11, against India'saverage of 9%, the report says.
Ahmedabad, the largest city in Gujarat, iswitnessing rapid growth in thereal estate market. The pricesof residential properties have moved up more swiftly in the past two years.
Apart from appreciation in capital value, residential propertiesalso yield 3-5% return annually asrental income.
Thegrowth in the housing market isexpected to continue. Around 80% of the local industry playersexpect property pricesto strengthen up to 10% in the next two years.Â
Hence, economicgrowth of a state/ country partly depends on housing . Major returnscome from lowcost housing.
Investersand builders are more active for raising funds and businessas many people arelooking for better homes and better facilities.