The latest trends in housing demographics continue to increase demand for homes in the affordable housing sector. By 2022, demand for an additional 90 million housing units is predicted. Urbanization, population growth and decreasing average household sizes represent the main forces behind the growing demand, with the real estate sector predicted to increase by 11.2% per year till 2020.Government interventions are now encouraging the supply of housing in the affordable market segment through the Pradhan Mantri Awas Yojna (PMAY) scheme, which provides a subsidy of Rs. 2.4 lacs to home buyers purchasing residences below 60 sq. meters.
Xrbia Developers, having supplied 3776 houses in 2016 alone is responding these incentives. Having established a base in the Mumbai Metropolitan Region and Pune Region, the company is on its way to reach a target of US $1 billion in sales by the end of 2017. Having sold 8,776 houses in the last 3 months, Xrbia is aiming to launch 24 projects in this year, amounting to 50,000 houses worth Rs.10,000 crores.
Xrbia further stands out in the sector for its innovative “No-Income-Proof” home loan scheme. This scheme enables applicants to apply for finance without income proof documents, and is backed by 20 housing finance companies, thereby extending opportunities for home ownership to the informal sector in India.
In a recent research report, Prop Equity, a leading real estate data and analytics platform covering 40 cities in India, confirmed Xrbia’s position as the affordable market leader, “Xrbia has emerged as the leading Real Estate Developer in the Affordable Housing Segment (i.e. under Rs. 25 lacs) across India in terms of units sold, selling approximately 2900 apartments between April 2016 to Dec 2016.”
Established affordable real estate providers have been slow to respond to the increase in demand in the below 20 lacs market space, causing demand to far outstrip supply in quickly urbanizing locations. In the Pune and Mumbai and Metropolitan Region, for example, demand for houses below Rs. 20 lacs outstrips supply by approximately 35%.
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