Affordable housing projects have their inherent advantages. First, its turnover is faster than big-budget housing projects. Such projects quickly generate working capital for realtors.

Even quick bookings are made which give go-getter like response to developers.

Many big realtors as well as MNCs see lucrative business in affordable housing. Many a times, they try to make profit on their previously purchased vast stretch of land by launching affordable housing schemes there.

The Union Budget 2016-17 also made a case for the segment to become more popular. The budget allowed 100per cent deduction for profits to housing projects building homes up to 30 sq metres in the four metro cities and 60 sq metres in other cities.

The construction of affordable houses up to 60 square metres under any scheme of the Central or State Government including PPP Schemes will be exempted from service tax. Also, first time homebuyers will get deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17, where house cost does not exceed Rs 50 lakh.

A number of developers are launching affordable housing projects in Gujarat. To boost affordable housing, the state government has also introduced single-window clearance system to process realtors’ needs and project approvals. In Ahmedabad, more affordable housing projects underway at Panchwati, Nikol-Kathwada, Kalol, Vaishnodevi Circle, Memhmdavad Khatraj and Aslali Jetpur. Such housing projects are also launched targeting the economically weaker section.