Affordable Housing Sales Dip in Top Indian Cities: A Cause for Concern?
The Indian real estate market is witnessing a decline in affordable housing sales, with a 4% dip in top 8 cities. What's driving this trend?
Affordable HousingPropequityIndian Real EstateLuxury ApartmentsResidential PropertiesReal Estate PuneJun 16, 2024
A lower supply of affordable homes is one of the key factors contributing to this marginal fall in sales. The fresh supply of homes, up to Rs 60 lakh each, declined to 33,420 units during January-March 2024 across these top eight cities, from 53,818 units in the year-ago period.
Builders are shifting their focus towards launching luxury apartments to capitalize on the surge in demand for premium residential properties. Profit margins are also higher in luxury projects, making them more attractive to developers.
Despite the decline, sales of affordable homes have been steadily increasing over the past few years. In 2019, sales of homes priced up to Rs 60 lakh stood at 2,26,414 units. During the 2020 calendar year, which saw the outbreak of the Covid-19 pandemic, sales in this price category fell to 1,88,233 units. However, sales bounced back in 2021 and 2022 to 2,17,274 units and 2,51,198 units, respectively.
On a city-wise basis, Mumbai Metropolitan Region (MMR) saw a rise in sales of affordable homes to 28,826 units during January-March this year, from 23,401 units in the year-ago period. Pune witnessed a decline in sales to 12,299 units from 14,532 units, while Ahmedabad saw a fall in sales to 6,892 units from 8,087 units. Hyderabad, Chennai, and Bengaluru also saw declines in sales, while Kolkata saw a rise to 3,741 units from 2,831 units.
PropEquity, an online provider of analytics, data, and deal flows covering the Indian real estate industry, tracks over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis. The company reported a 37% growth in total income to Rs 44.17 crore last fiscal from Rs 32.3 crore in 2022-23.
The dip in affordable housing sales is a cause for concern, as it may lead to a shortage of affordable housing options for middle-class buyers. The Indian government has been promoting affordable housing through various initiatives, and this trend may require policymakers to rethink their strategies to ensure that the demand for affordable housing is met.
Frequently Asked Questions
What is the decline in affordable housing sales in top 8 Indian cities?
The sales of affordable homes, priced up to Rs 60 lakh each, have declined by 4% in eight major Indian cities.
What is the reason for the decline in affordable housing sales?
A lower supply of affordable homes is one of the key factors contributing to this marginal fall in sales.
Which cities saw a rise in sales of affordable homes?
Mumbai Metropolitan Region (MMR) and Kolkata saw a rise in sales of affordable homes.
What is PropEquity?
PropEquity is an online provider of analytics, data, and deal flows covering the Indian real estate industry.
What is the impact of the dip in affordable housing sales?
The dip in affordable housing sales is a cause for concern, as it may lead to a shortage of affordable housing options for middle-class buyers.
Related News Articles
Andhra Pradesh to Introduce New Investor-Friendly IT Policy
Andhra Pradesh IT Minister Nara Lokesh has called for a new investor-friendly IT policy to attract companies to set up shop in the state.
Nexus REIT: Blackstone-backed Trust Files SEBI Application for ₹6,200 Crore Public Issue
Nexus, a leading retail real estate entity in India, has filed papers with SEBI for a ₹6,200 crore REIT public issue. This marks the fifth public listing of Blackstone India's real estate business, further solidifying the company's presence in the market.
Maharashtra Government Allocates 180 Acres in Madh Island for Dharavi Redevelopment
The Maharashtra government has approved the allocation of 180 acres in Madh Island for the Dharavi Redevelopment Project (DRP), led by the Adani Group. This move aims to resettle Dharavi residents and includes plans for a hospital, a singing academy, and
Brand Street Integrated Expands its Footprint in Pune with Krishna Mugatkar as Business Director
Brand Street Integrated strengthens its presence in Pune with the appointment of Krishna Mugatkar as Business Director, bringing his expertise in marketing and real estate to the table.
Godrej Properties Launches First Housing Project in Hyderabad
Godrej Properties, a leading real estate developer in India, has made a significant move by entering the Hyderabad market with its first housing project. Known for its presence in key urban centers like Mumbai, Delhi-NCR, Bengaluru, and Pune, the company
M2K Group: Redefining Real Estate, Biologicals, and Multiplexes in India
Explore how M2K Group is revolutionizing the Indian market with cutting-edge developments in real estate, biologicals, and multiplexes. Discover the innovative strategies and forward-thinking leadership behind this dynamic company.