Decline of Affordable Housing: A Growing Concern in India's Real Estate Market
Affordable housing supply drops 38% in top 8 Indian cities
Affordable HousingReal Estate MarketLuxury FlatsConstruction CostsPropequityCredai NcrReal Estate NewsMay 26, 2024
This decline is attributed to the rising land and construction costs, making it less profitable for developers to invest in affordable housing projects. The trend is expected to continue in 2024, with only 179,103 units of affordable homes launched in 2023, a drop of 20% compared to 2022.
The top 8 cities that have seen a decline in affordable housing supply include Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad. The rise of luxury flats in these cities has also contributed to the decline of affordable housing supply.
Experts believe that the increasing construction costs and rising real estate prices are making it difficult for developers to invest in affordable housing projects. According to Samir Jasuja, CEO and MD of PropEquity, Several factors are contributing to this decline. Rising real estate prices (up to 50-100% in some cities over the past two years) and increasing construction costs are making affordable housing projects less profitable for developers.
The Indian real estate market has seen a significant shift towards luxury development in recent years, with many developers focusing on high-end projects. This has led to a decline in affordable housing supply, making it difficult for lower and middle-income individuals to own a home.
PropEquity is a leading real estate data analytics firm that provides insights and trends in the Indian real estate market. CREDAI NCR, Bhiwadi- Neemrana is a real estate developers' association that represents the interests of developers in the region.
Frequently Asked Questions
What is the decline in affordable housing supply in top 8 Indian cities?
The decline is 38% in the first quarter of 2024 with only 33 420 units of affordable homes launched
What are the reasons for the decline in affordable housing supply?
Rising land and construction costs making it less profitable for developers to invest in affordable housing projects
Which cities have seen a decline in affordable housing supply?
Delhi-NCR Mumbai Metropolitan Region (MMR) Bengaluru Hyderabad Chennai Kolkata Pune and Ahmedabad
What is the trend expected in 2024?
The decline in affordable housing supply is expected to continue in 2024
Why is affordable housing important?
Affordable housing is essential to make the dream of homeownership attainable for lower and middle-income individuals
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