Conclusions on real estate developments in Kochi
derrin
Explanation for the declining importance of rental housing in Kerala is
to be found both in terms of supply as well as demand factors. On the
demand side, the factors leading to high demand for ownership housing
are the inflationary expectations related to price of houses,
uncertainty related to the future and period of tenure and the changing
profile of the urban population.
The declining level of affordability with incomes not keeping pace with
increasing cost of houses would have dampened the demand somewhat.
Factors on the supply side however have made ownership housing more
accessible through institutional support, even though it was not
available to rental housing.
The various �own your home� schemes, with respect to ' *Flats in Kochi*
' (http://www.abadbuilders.com/viewprojects.asp?Sts=OnGoing) offered
greater availability of institutional finance for ownership housing and
the emergence of unauthorized colonies in the city have made ownership
housing accessible to a large section of population. Since the setting
up of the National Housing Bank, a larger amount of finance may become
available. As of now this finance is also geared to ownership housing.
On other counts however the future does not seem to be as hopeful for
continued availability and accessibilities of ownership housing to
large sections of the population. The heavy increase in land prices
have made ownership housing inaccessible to a larger section of
population with small and medium incomes. The housing programme
initiated by the Kerala State Housing Board has suffered a setback and
it has not announced any new scheme since 1979. The low availability
of land in appropriate locations in the city area has led to fewer
options for squatter settlements for the lower income groups. There is
going to be greater need for rental housing and the state government
will have to have a clear and explicit policy to meet this increasing
need.
--
derrin
pande...@gmail.com
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Ajay 09717555052