From low-cost housing to lightweight material and non-renewable energy, there’s a lot to look forward to this year, says Nidhi Adlakha

Budget 2017

The upcoming budget is likely to make a sweeping recast of direct taxes focusing on both corporate tax and personal income tax to give a boost to the economy that’s struggling in the wake of demonetisation. Many relaxations for the poor and middle class have been announced that will help them purchase homes. On a Rs. 9 lakh loan, there will be a 4 per cent interest exemption, and on loans up to Rs. 12 lakh, a 3 per cent interest exemption would be applied. A 3 per cent interest waiver on loans up to Rs. 2 lakh for construction of houses in rural areas has also been announced.


Rise of mid-income localities
Experts predict the rise of middle-income localities within the city, and neighbourhoods in the southern and western peripheries. Areas in North Chennai will see excellent traction, says R. Kumar, MD, Navin’s. Middle income end-user consumption will be the key driver in these locations. Localities south of Velachery such as Medavakkam are already seeing increased development. Anupama Mohanram, Architect, Green Evolution Architectural Consultancy, says, “We are already witnessing the demolition of existing constructions, and their redevelopment in older parts of the city. This trend is likely to continue with the demand for newer living spaces in well-established neighbourhoods.”
Affordable housing
The focus in 2017 will clearly be on affordable housing. Until now, only a small fraction of the segment was being catered to by the private sector and this is expected to improve in the coming years. With interest rates falling significantly, a rise in demand and absorption in the middle-income category is expected. Ready-to-move-in homes will become popular. The focus will be on creating products for varied segments of buyers instead of only one market, says Surendra Hiranandani, CMD, House of Hiranandnani. “Demonetisation will not affect established players as transactions will take place only through the legal route. The commercial real estate sector will also not be hurt as they cater to office/industrial leasing and all transactions are done through banking channels.”

The Benami Transactions (Prohibition) Amendment
Act, 2016

Passed by Parliament in August 2016, the Act came into effect on November 1, 2016. Designed to curb black money, the Act is likely to have a major impact on the real estate sector. The purchase and registration of properties will be more transparent, and the Act will ensure all transactions are in the name of the actual owners. There will be a curb on the maximum number of property registrations under one name, and this would make properties available to the urban poor. The Act will have a greater impact on large-scale benami transactions in agriculture land. A Shankar, National Director, JLL, says, “The Act aims at solving the problem of scarcity of land by taking strong action against benami property. A lot of land inventory may become available to the government, which may be used in fast-tracking affordable housing plans.”
Designing local
Local materials and construction techniques will see a comeback. Utilising mud and compressed blocks from the site is a growing trend, and similarly, earth walls in combination with concrete allow for the construction of load-bearing structures. New types of bricks are now available in varied colours. The timelessness of this basic material is seeing new applications and changing the way bricks can be used on a building façade. City-based architect Pavithra Sriprakash says, “With a strong need for faster turnaround, quick-set cement will change the way we construct. Boards that can replace traditional block work and precast methods should be adopted as standard building practices.”
Bold décor
Bright and bold graphic prints are in this year. Pairing prints with stripes and polka dots will be in vogue. Green is in and ‘Greenery’ has been named the 2017 Pantone colour of the year. According to Pantone, Greenery is a versatile trans-seasonal shade that lends itself to many colour combinations. The shade can be paired with neutrals, bright, deeper shades, pastels, and metallics. Butterfly motifs, mixed patterns, and artisanal décor will be big in 2017.
Lightweight homes
As labour costs will continue to be high, larger and light-weight wall materials such as hollow clay and aerated cement blocks will be in high demand. These blocks require less masonry/mortar compared to conventional bricks. Prefabricated joinery such as UPVC windows and pre-hung door shutters will also be popular as they require less on-site carpentry work. Plywood in columns, slabs, and beams will be used as it creates an un-plastered yet smooth surface, and avoids the use of additional plastering.

Renewable power

The demand for renewable energy systems such as solar-PV and bio-gas will be high. in 2017. Rainwater recharging, grey water recycling systems will be popular and hydro-pneumatic water pumping systems will be widely used in low-rise apartment complexes with many units, says Shankar. As per the recent proposed environmental guidelines for construction projects in urban areas, at least 1 per cent of connected applied load of power shall be met from renewable sources such as photovoltaic cells or wind mills, all common area lighting must be equipped with LED/solar lights, and energy meters must be installed to measure over all energy consumption. For developers, it has become imperative to include solar power or wind energy generation in their project cost, and it’s mandatory to install systems to ensure an environment-friendly living experience, says architect Mohanram. Going forward, the use of renewable energy in projects is going to make a decisive change in consumers’ home-buying strategies.