About Affordable Housing
The BRIC countries have a large and growing middle-class population with increasing disposable incomes. Affordable housing provides the middle and low-income population with the opportunity to own independent houses. Also, the governments in these nations provide benefits such as tax incentives to promote affordable housing development. The PPP model for the construction of affordable housing is also gaining popularity in BRIC countries. It helps developers utilize the land available with the government for multiple purposes, besides helping them get fast and easy approvals. Demand is far outstripping the supply of such housing.
Technavio’s analysts forecast the affordable housing market in BRIC to grow at a CAGR of 7.22% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the affordable housing market in BRIC countries for 2016-2020. To calculate the market size, the report considers the expected demand for new units across BRIC countries during the forecast period.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Affordable Housing Market in BRIC Countries 2016-2020
Technavio recognizes the following companies as the key players in the Affordable Housing Market in BRIC Countries: Ansal Housing and Construction, Brookfield, China State Construction Engineering, CITIC Construction, Etalon Group, Gafisa and LSR Group.
Other Prominent Vendors in the market are: AFI Development, Capital Group, China Properties Group, China Vanke, Coastal Greenland, Fantasia Holdings, Godrej Properties, Greentown China, KWG Property, MirLand Development Corporation, PIK Group, ROSE GROUP, Shanghai Forte Land, Shapoorji Pallonji Engineering and Construction, Sino-Ocean Land, and Tata Housing.
Commenting on the report, an analyst from Technavio’s team said: “A PPP model typically operates on a fair bidding process for land acquisition. The PPP model eases the process of acquisition of land and the time and effort required for the project, reducing costs and increasing efficiency. BRIC countries are also increasingly contributing to create a conducive environment by reducing stamp duties and providing tax reliefs.”
According to the report, with BRIC countries accounting for nearly half of the world's middle-class population, the demand for affordable housing has assumed critical implications in these countries. The banking sector in these countries is also fueling market growth by providing easy access to loans and offering funding for affordable housing at reasonable interest rates. Along with these economic developments, socio-cultural factors like the growing number of nuclear families in India are also contributing to demand for affordable housing.
Further, the report states that low-rise residential buildings and commercial complexes are being developed on the same plot because of unfavorable land management policies, resulting in lower income for developers. Titling issues and lack of awareness about property rights also adversely affects the construction of affordable houses.
Ansal Housing and Construction, Brookfield, China State Construction Engineering, CITIC Construction, Etalon Group, Gafisa and LSR Group, AFI Development, Capital Group, China Properties Group, China Vanke, Coastal Greenland, Fantasia Holdings, Godrej Properties, Greentown China, KWG Property, MirLand Development Corporation, PIK Group, ROSE GROUP, Shanghai Forte Land, Shapoorji Pallonji Engineering and Construction, Sino-Ocean Land, Tata Housing.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook