India is one of the rapidly developing countries in the world. It has emerged as one of the global hot spots for investments. With the development happenings in the Indian Economy, the massive need for infrastructure development is inevitable. With the fast paced economical development, the areas like urbanization, rising disposable income and higher living standards have become the norms. This has resulted in demand for quality housing across segments.

Housing is an arduous problem across the world, especially in developing countries like India. Apart from being one of the three basic necessities of life, adequate housing helps to prevent diseases, injury and death, provides security. During the initial stages say in 80’s housing developments in India was a challenge as it faced liquidity crisis. People have to shell out their hard earned money to construct their homes. No financial assistance was offered by banks or by financial institutions. Mobilizing funds to complete the projects was difficult for builders resulting in dip in volume.

Beginning of 2000 saw a major shift where customers were financed by Banks at allow interest rate making homes affordable for all. In 2008, the shift was to construct affordable housing for various segments according to Income, affordability and size. To make this affordable housing come true, government is approving projects slightly away from the city limits. Mumbai and NCR have projects 65 kms away from the city limit. Customers are educated about rent vs. home loans.

Many big real estate players like TATA, VBHC has already entered into this affordable market segment and offering housing for people with annual income of 2-3 lakhs. But still the demand and supply gap is substantial in lower and middle income group. With introduction Pradhan Mantri Awas Yogana offering excellent benefit for first time home seekers affordable housing has become the chanting mantra across the country.