The lack of homes in India's urban areas has become a significant worry for the country, as the total shortage has eclipsed 24 million units for a required 66.3 million households, according to a report from Jones Lang LaSalle India.
A major lack of property is available for those who are in impoverished areas, which typically is taken care of by the country's government through welfare programs. Much of the reason for the lack of housing is due to a lack of space in urban areas to develop new commercial real estate, as well as high construction costs and governmental red tape. Overall, most of the residential loans given to consumers are for more than Rs 10 lakh (USD $17,906)
"The key issue that deprives people from availing a home loan in the Rs 3 to Rs 10 lakh bracket is the perceived high risk - apprehensions of loans turning into non performing assets and uneven payment patterns," the report explained.
Total construction costs total 50 percent to 60 percent of the property's sales price when it comes to affordable housing, while luxury projects are not usually more than 20 percent, the report added.