Key Factors That Impact Affordability while investing in real estate

Various government policies have been introduced to fulfil the housing requirements of all the people of the country. There has been an increase in the growth of affordable and low-cost housing projects in the country. In a developing country, it becomes essential to provide low-cost housing options to people. The creation of more and more affordable homes is increasing for low, middle-class people and economically weak sections of society.

According to a survey, about 600 million people will start living in urban areas of the country. The growth of 51% has indicated the need to provide low-cost housing facilities to people in need. To ensure that economically weak people can afford these houses and provide growth to the real estate industry.

Government policies

The government policies are influencing housing affordability. Service tax is not being charged on it. Various agencies are also promoting the housing affordability system in the country. Real estate developers are also focused on launching affordable housing projects on a large scale.

Home Ownership and Rising Income Levels

With progressive urbanisation, India is also experiencing a growing culture of home ownership, wherein people not only from the urban class but also from the lower income groups are aiming to have their own dream home.


The longer it takes to complete a housing project, the higher the costs. The time it takes for approvals and permits also adds to the cost, which is why municipalities and builders must collaborate to keep these costs low.

Labour and materials

The cost of building materials and labour can have an impact on the cost of housing. These expenses are usually directly related to the economy. Easier land availability, that too, at low cost, particularly in suburban localities further bolsters the progress of affordable housing development.

Financial and regulation support

Various Banking/Non Banking Financial Institutions are financing development activities under affordable housing. Due to this people are influenced to have their own homes at affordable prices.