Incentives ahead

The next general elections are just a few months away — May 2019 to be precise — and that should be more than enough to see major incentives being announced around affordable housing.

“Developers definitely are expecting more incentives,” said Azaz Motiwala, managing director of Ikon Marketing Consultants. “The FSI (floor space index) has already been increased from 1.875 to 2.7 and any further hike won’t be lucrative for developers.

“Property prices in the cities have already bottomed out. The market’s not expecting any price hikes in the near future. Indian real estate has entered into consolidation phase and this may continue for a year.”

According to available data, around 41 per cent of new housing supply was in the affordable category.