An average male is expected to live to be 70 and an average woman is expected to live longer.
Thus with the increase in population the demand for houses has also increased in Kerala.
Besides with the rapid popularity of nuclear families vis-à-vis joint families, demands of real estate in Kerala have grown sharply.
The following table reflects the growing demand and supply in terms of houses built and is also a projection of the future demand.
Estimated Demand for Houses by 2008 using 2001
Actual population and demand
| Year | Demand During The Year | Cumulative Demand For Houses | Average Houses Likely To Be Constructed | Balance Houses |
| 2001 | 8.26 | 8.26 | -- | -- |
| 2002 | 1.59 | 9.85 | 2.69 | 7.16 |
| 2003 | 1.07 | 10.92 | 5.38 | 5.54 |
| 2004 | 0.73 | 11.65 | 8.07 | 3.56 |
| 2005 | 0.51 | 12.16 | 10.76 | 1.4 |
| 2006 | 0.55 | 12.71 | 13.45 | -- |
| 2007 | 0.64 | 13.35 | 16.14 | -- |
| 2008 | 1.09 | 14.44 | -- | -- |
NOTE: Demand during each year is calculated based on the average family size 4.9.
As per the census survey there were 93.56 lakh houses in Kerala in 2001. 7.31 lakhs of these were vacant and 86.25 lakhs occupied. 64.90 lakhs of the occupied houses were residences and these were categorized into - 849.64 lakhs livable houses and 105.53 lakhs dilapidated houses. Keeping in mind this count of dilapidated houses, the demand for houses in Kerala for the year 2001 was estimated to be 0.63 lakhs. The number of dilapidated houses which needed reconstruction was 5.33 lakhs and those which require major repair/construction were about 2.3. Thus the total demand in 2001 was calculated at 8.26 lakhs.
There are, in the state of Kerala, more than 20 major agencies involved in enforcing the various housing programs as envisioned by the state. The Kerala State Housing Board, Rural Development Department, Kerala State Co-operative Housing Federation, Agricultural Bank and Kerala State Development Corporation are among these.
Houses constructed by various agencies
YEAR NO OF HOUSES CONSTRUCTED
2001-02 82082
2002-03 133228
2003-04 (till 30th Sept ‘03)51126
Also the increase in housing loan providing institutions is promoting this phenomenon. The subsidies provided by the Local Self Government bodies and the private financial institutions such as HDFC and private banks ahs also increased the purchasing power of the common man. HUDCO is another institution which financially assists individuals and institutions with house construction. The following table reflects the monetary assistance lent by HUDCO through 2001-2004 towards institutions and individuals interested in construction of houses.
| Year | Amount Sanctioned | Amount Released | ||
| Institutions | Individuals | Institutions | Individuals | |
| 2001-02 | 4370.6 | 1617 | 4370.63 | 1617 |
| 2002-03 | 3439.45 | 42396 | 3439.45 | 42396 |
| 2003-04 | 6932.16 | 561 | 6932 | 16 561.00 |
The early 90s saw very few financial institutions proffering loans for housing purposes and the interest rates were as high as 13- 18 % per annum. But with a greater influx of liquid funds and a more liberal policy there has been cut throat competition among the banks and the ultimate gainer has been the commoner. Housing finance has is now cheaper and the terms of availability are no longer as stringent as they used to be. These institutions include Nationalized Banks, HDFC, HUDCO, LIC, GIC, Canfin Homes, and Co-operative Housing Federation. The interest rates vary on the principal amount lent and the term or the loan and are as low as 7.75% for loans up to 5 years. The Government of Kerala only needs to cater to the housing needs of the financially backward classes of society. The real estate scenario in Kerala is indeed on an ascent and the days ahead for those involved in this sector seem bright.
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