Decline in Affordable Housing Supply: A Growing Concern in Indian Cities
The supply of affordable homes in India's top 8 cities has declined by 38% in the first quarter of 2024
Affordable HousingIndian Real EstatePropequityCredai NcrHousing SupplyReal Estate NewsMay 26, 2024
The decline in affordable housing supply is attributed to the sharp rise in land and construction costs, making it less profitable or unviable for developers to undertake such projects. Additionally, the post-pandemic demand for larger homes is pushing developers towards mid-range and luxury segments, which offer higher margins.
The cities that have seen a significant decline in affordable housing supply include Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad. Delhi-NCR is the only city that has seen an increase in affordable housing supply, with 400 units launched in January-March 2024, up from 38 units in the year-ago period.
Industry experts are concerned about the trend, stating that prioritizing affordable homes is essential to make the dream of homeownership attainable for lower and middle-income individuals. Developers in tier II and III cities are, however, launching affordable housing projects to cater to the growing demand.
The Indian government has been pushing for affordable housing, with initiatives like the Pradhan Mantri Awas Yojana (PMAY) aimed at providing housing for all by 2022. However, the decline in affordable housing supply raises concerns about the government's ability to meet its targets.
PropEquity is an online provider of analytics, data, and deal flows covering the Indian real estate industry. The company tracks over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis. Its search platform generates analysis for all verticals under residential, commercial, and retail sectors.
CREDAI NCR is a leading real estate association that represents the interests of developers, builders, and promoters in the National Capital Region (NCR).
Frequently Asked Questions
What is the decline in affordable housing supply in India's top 8 cities?
The supply of affordable homes in India's top 8 cities has declined by 38% in the first quarter of 2024
What are the main reasons for the decline in affordable housing supply?
Rising real estate prices and increasing construction costs are the main reasons for the decline in affordable housing supply
Which city has seen an increase in affordable housing supply?
Delhi-NCR is the only city that has seen an increase in affordable housing supply with 400 units launched in January-March 2024
What is the government's initiative to promote affordable housing?
The Pradhan Mantri Awas Yojana (PMAY) is the government's initiative to provide housing for all by 2022
What is PropEquity?
PropEquity is an online provider of analytics data and deal flows covering the Indian real estate industry
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