Most buyers from the economically weaker section (EWS) are willing to pay Rs 3 lakh initially and prefer a two-room-kitchen accommodation,a survey on affordable housing shows. They are even willing to pay extra for exclusive toilet and extra electricity points,the survey findings reveal.
A total of 12,000 people and 200 builders from Pune,Nagpur,Malegaon and Nanded were surveyed and their views on affordable housing opportunities were sought. The first ever study funded by the state government was aimed at finding out whether poor people could afford to pay,said Dr Rajas Parchure,director,Gokhale Institute of Politics and Economics (GIPE).
GIPE is the oldest institute in the country that conducts research and training in economics and was involved in conducting the survey.
Nearly 88 per cent of people surveyed in Pune were keen on buying a decent 300-sq ft house. Again,a majority of people from Pune,Nagpur and Malegaon were ready to pay the minimum offer price of Rs 2.5 lakh per house.
In Pune,5,520 people from the economically weaker section and 78 builders were selected for the survey. The sample included 3,720 people from Nagpur,1,800 from Nanded and 960 from Malegaon. Monthly installments was the preferred mode of payment and varied from Rs 946 in Malgeaon to Rs 2,978 per month in Pune.
The city-wise average affordability of EWS families was not comparable given the varying income levels. Affordability was the highest in Pune with 2,326 people saying they could buy a house costing Rs 2.5 lakh. In Nagpur,2,122 people could afford a Rs 2.5-lakh home,in Nanded,1,035 people and 627 in Malegaon.
In Pune,950 people could afford a house costing Rs 2.5 lakh to Rs 5 lakh,while 269 could afford it in Nagpur,91 in Nanded and 31 in Malegaon. Again,686 people could afford a house costing Rs 5 lakh to Rs 10 lakh in Pune followed by 79 in Nagpur,27 in Nanded and three in Malegaon.
In the survey,105 EWP people in Pune said they could afford to pay for a house that costs between Rs 10-15 lakh,while the number was 10 in Nagpur,three in Nanded and one in Malegaon. There were 774 people in Pune who said they could not afford to buy a house during their lifetime.
We looked into the demand and supply problems in the current housing market. Issues related to peoples incomes,housing preferences,demographics were studied carefully, Parchure said. The report was submitted to the government recently. The report recommends 50 per cent subsidy to ensure affordable housing for the poor.