Budget Housing to Raise Wood Panel Products Demand

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Boom in the real estate sector result the benefit of lot of allied industry and entrepreneurs, which also includes the country’s wood panel industry. However, due to the slow down or recession in real estate sector for last some time, the Wood panel industry has also seen sluggishness, but now things are changing slowly, which is also going to be a big advantage for the Wood panel industry. The dream projects launched by central government like “Housing for All by 2022”, affordable housing and 100 smart cities project might fuel the demand of wood panel products.

The government aims to built one crore affordable homes for the urban areas in the country. Rural area is also added in the plan, then the estimated target of the government is to build up to 20 million houses by 2022. To achieve this vast target, Government has started the schemes such as Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource, affordable housing for weaker section through credit linked subsidy, partnership with Public & Private sectors and Subsidy for beneficiaryled individual house construction or enhancement. Under the plan, residential construction is being approved by the government in a phased manner. Last Week of January 2019, government approved the construction of large numbers of affordable houses under the Pradhan Mantri Awas Yojana (Urban), taking the total number to about 72.5 lakh affordable houses. In the next three-four years, the government is supposed to build Affordable Housing on a large scale. Apart from the government, the housing projects on large scale also being built by the private sector.

Apart from these, the government’s new reforms like GST and Real Estate and Regulation Act (RERA) has given tremendous boost to the sense of greater transparency and security of the customers in the real estate and residential projects. With the introduction of safe and transparent residential plans, the reinvestment of the safe investment in the realty market will be ensured.

This is the obvious and a matter of fact that the biggest advantage of building such a wide-scale of construction activities in real estate to be benefitted the Wooden and related industry. It’s also notable that the Wood panel or the Wooden Industry is the only area that has a residential need even after the completion of the housing development. As per the recent CARE Ratings report, affordable housing still offers 6-8 billion sq. ft. development opportunity in India over the next 3-4 years. It is natural that for the Affordable Housing, there will also be a need for a Wood Panel in this proportion, which is also a good sign for the Wooden Industry.

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