Affordable Housing in Decline: Real Estate Shifts Focus to Premium Segments
An in-depth analysis reveals that affordable housing projects under PMAY are declining as the real estate sector in major Indian cities shifts its focus towards premium segments, affecting thousands of low-income families.
Affordable HousingReal EstatePmayLowincome FamiliesPremium SegmentsReal Estate PuneApr 14, 2025
The Pradhan Mantri Awas Yojana, initiated in 2015, aimed to ensure affordable housing for all by 2022. However, recent data from real estate analytics firms and industry reports indicate a decline in the number of affordable housing projects. In cities like Bengaluru, where the tech boom has attracted a significant influx of young professionals, the demand for luxury and premium housing has soared. Developers, driven by higher profit margins, have responded by prioritizing these segments over affordable housing.
Chennai, another major city, has also witnessed a similar trend. Despite the city's robust middle class, the real estate market has seen a surge in high-end projects, particularly in areas like Alwarpet, Adyar, and Velachery. The demand for luxury apartments and premium residential complexes has led to a rise in property prices, making it increasingly difficult for middle-income families to find affordable homes.
In Hyderabad, the story is no different. The city's rapid urbanization and economic growth have attracted significant investment in real estate, particularly in the luxury segment. Gachibowli, Hitech City, and Kukatpally have become hotspots for premium housing projects. While this development has boosted the economy, it has also widened the gap between the haves and the have-nots, with affordable housing becoming a rare commodity.
Kolkata, known for its rich cultural heritage, has also seen a shift towards premium real estate. The city's real estate sector has been driven by the development of luxury apartments and high-end residential complexes, particularly in areas like Salt Lake, Ballygunge, and Park Street. This trend has raised concerns among policymakers and urban planners, who fear that the city's middle and lower-income groups may be left behind.
Pune, often referred to as the 'Oxford of the East' due to its numerous educational institutions, has also experienced a significant shift in its real estate market. The city's real estate developers have increasingly focused on premium and luxury projects, catering to the affluent and the growing middle class. Areas like Kalyani Nagar, Magarpatta, and Balewadi have become hubs for high-end residential complexes, making it challenging for low-income families to find affordable housing options.
In the National Capital Region (NCR), which includes cities like Delhi, Gurgaon, and Noida, the trend towards premium real estate has been particularly pronounced. The NCR, known for its booming real estate market, has seen a surge in luxury apartment developments, particularly in areas like Gurgaon's DLF City and Noida's Sector 62. While these developments have attracted significant investment, they have also contributed to the rising property prices, making it difficult for low-income families to afford homes.
The shift in focus towards premium segments has raised several concerns. Firstly, it undermines the objectives of the Pradhan Mantri Awas Yojana, which aimed to provide affordable housing for all. Secondly, it exacerbates the housing crisis for low-income families, who are increasingly marginalized in the real estate market. Urban planners and policymakers are now grappling with the challenge of balancing the economic benefits of luxury real estate with the social need for affordable housing.
To address this issue, several steps need to be taken. Governments at both the national and state levels must implement policies that encourage developers to build more affordable housing projects. Incentives such as tax breaks, subsidies, and fast-track approvals for affordable housing projects can help bridge the gap. Additionally, the creation of special economic zones (SEZs) for affordable housing and the development of public-private partnerships can play a crucial role in ensuring that low-income families have access to affordable homes.
In conclusion, while the real estate market in major Indian cities continues to grow, the shift towards premium segments is a cause for concern. The decline in affordable housing projects under PMAY is not only a setback for the government's housing goals but also a significant challenge for low-income families. It is imperative that policymakers and developers work together to strike a balance, ensuring that the benefits of economic growth are shared equitably among all segments of society.
Frequently Asked Questions
What is the Pradhan Mantri Awas Yojana (PMAY)?
The Pradhan Mantri Awas Yojana (PMAY) is a flagship program of the Government of India aimed at providing affordable housing for all by 2022. It includes both rural and urban components and aims to ensure that every family in India has a pucca house with basic amenities.
Why is the shift in focus towards premium real estate a concern?
The shift towards premium real estate is a concern because it undermines the objectives of the Pradhan Mantri Awas Yojana (PMAY) and exacerbates the housing crisis for low-income families, who are increasingly marginalized in the real estate market.
What are some potential solutions to address the decline in affordable housing?
Some potential solutions include implementing policies that encourage developers to build more affordable housing projects, offering incentives such as tax breaks and subsidies, and facilitating public-private partnerships to develop affordable housing.
How has the real estate market in major Indian cities like Bengaluru and Pune changed?
In major Indian cities like Bengaluru and Pune, the real estate market has seen a significant shift towards premium and luxury segments, driven by higher profit margins and increased demand from affluent and middle-class populations.
What role can governments play in ensuring affordable housing for low-income families?
Governments can play a crucial role by implementing policies that encourage the development of affordable housing, providing financial incentives to developers, and creating special economic zones (SEZs) for affordable housing projects.
Related News Articles
Mumbai Sees Third Highest Property Price Rise Globally in Q1 2024
Mumbai and New Delhi recorded an increase in their average annual property prices, while Bangalore witnessed a slight drop in prime residential or luxury homes in Q1 2024.
Mumbai's Property Registrations Show 3% Year-on-Year Growth in November
Despite a 27% month-on-month dip, Mumbai's property registrations recorded a 3% increase year-on-year in November, with stamp duty collections rising by 28%, according to IGR data.
Home Sales Surge to 5.8 Lakh Units in 2024, Valued at Rs 4 Trillion
MUMBAI: Home sales in 2024 saw a significant boost, reaching 5.8 lakh units worth Rs 4 trillion. The residential real estate market is poised for continued growth in 2025, with over 3.6 lakh units expected to be delivered across major cities.
T9L QUBE Appoints Gaurav Gaggar as Co-Founder to Fuel Asia Expansion
T9L QUBE, a decentralised venture studio platform, has appointed investment banker Gaurav Gaggar as co-founder to drive its ambitious growth strategy in Asia. Gaurav brings expertise in finance and incubation of multimillion-dollar companies.
Real Estate Boom in Dehradun: Concerns Over Environmental Impact
The rapid development of real estate in Dehradun has sparked concerns over its potential ecological damage. As more and more high-rise buildings and residential complexes spring up, environmentalists and residents alike are voicing their worries about the
Godrej Properties Q3 Results: Net Debt Drops 49% to Rs 3,848 Crore
Godrej Properties, one of India's leading real estate developers, has announced a significant reduction in its net debt to Rs 3,848 crore in the third quarter of 2024. This marks a 49% decrease from the previous year. The company's strategic focus on debt