Affordable housing industry is emerging as the most vibrant and dynamic segment of the housing sector. With the entry of various real-estate developers and availability of financial options, affordable housing industry is bound to witness astonishing growth. This growth will be driven by the wide population base, rising income level, increasing trend of nuclear families and rapid urbanization. The demand for affordable housing is escalating. Majority of this demand comes from low-income group which represents the most potential target segment for real-estate developers. Demand from mid-income group is also accelerating at a considerable pace. As per an estimate, the affordable housing industry is expected to surge at a CAGR of around 40% during 2012-2014.
Affordable housing can prove a huge platform for the market players to grow as there is a significant shortage for low-cost housing. To fill the demand-supply gap, government, real-estate developers and financial institutions are taking several initiatives.
Evaluating the affordable housing industry prudently, there exists a tremendous growth opportunity in tier-II and -III cities like Patna; the capital of Bihar, the fastest growing GSDP among Indian states; as the income level of low and mid-income group is rising. Seeing the lucrative potential, various players are expanding their operations in tier-II & -III cities.