India's Affordable Housing Crisis: Supply Plummets 38% in 8 Major Cities
The decline in affordable housing supply in India's top 8 cities has raised concerns about the dream of homeownership for lower and middle-income individuals.
Affordable HousingReal EstatePropequityCredaiHomeownershipReal Estate NewsMay 27, 2024
This decline is attributed to the rising land and construction costs, which have made affordable housing projects less profitable for developers. PropEquity's data showed that the new supply in this price category fell by 20% during the 2023 calendar year, and the trend is expected to continue in 2024.
Samir Jasuja, CEO and MD of PropEquity, said, 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.
Nitin Gupta, Secretary, CREDAI NCR, Bhiwadi-Neemrana, expressed concern over the trend, stating that prioritizing affordable homes is essential to make the dream of homeownership attainable for lower and middle-income individuals.
The Indian real estate market has been experiencing a surge in luxury housing projects, which has led to a decline in affordable housing supply. The rising costs of land and construction have made it challenging for developers to maintain profit margins while building affordable homes.
PropEquity is a leading real estate data analytics firm that provides insights and data to stakeholders in the industry. CREDAI NCR, Bhiwadi-Neemrana is a regional chapter of the Confederation of Real Estate Developers' Association of India (CREDAI), a national association of real estate developers.
Frequently Asked Questions
What is the decline in affordable housing supply in India's top 8 cities?
The supply of affordable homes has declined by 38% in India's top 8 cities during the January-March quarter
What is the reason behind the decline in affordable housing supply?
The decline is attributed to the rising land and construction costs which have made affordable housing projects less profitable for developers
Which cities are affected by the decline in affordable housing supply?
The eight cities affected are Delhi-NCR Mumbai Metropolitan Region (MMR) Bengaluru Hyderabad Chennai Kolkata Pune and Ahmedabad
What is the expected trend in affordable housing supply in 2024?
The trend is expected to continue in 2024 with a further decline in affordable housing supply
Why is affordable housing important for lower and middle-income individuals?
Affordable housing is essential to make the dream of homeownership attainable for lower and middle-income individuals
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