Real Estate Market Remains Resilient, but Concerns Arise for Affordable and High-End Segments
The real estate market has shown remarkable resilience since the onset of the COVID-19 pandemic, but experts are voicing concerns over the shrinking affordable housing sector and the challenges faced by the high-end ₹10-50 crore segment.
Real Estate MarketAffordable HousingHighend SegmentEconomic ChallengesReal Estate TrendsReal EstateMar 18, 2025
Gulam Zia, Senior Executive Director at Knight Frank India, has highlighted a notable trend: the decline in affordable housing. According to Zia, the affordable housing segment has shrunk since the onset of the COVID-19 pandemic, primarily due to a lack of developer interest. The focus has shifted towards more profitable and less risk-prone projects, leaving a gap in the market for affordable homes.
This trend is particularly concerning as the demand for affordable housing remains high, driven by a growing urban population and increasing migration to cities. The lack of affordable options can lead to a rise in informal settlements and exacerbate social inequalities. To address this issue, the government and private developers need to collaborate to create sustainable and accessible housing solutions.
On the other end of the spectrum, the high-end ₹10-50 crore segment is also facing its own set of challenges. While the ultra-luxury market has seen robust demand, especially from high-net-worth individuals, the pandemic has introduced new constraints. The global economic slowdown and travel restrictions have affected the purchasing power of potential buyers, leading to a slowdown in transactions.
Additionally, the high-end segment is highly sensitive to market conditions and global economic trends. Any significant changes in interest rates, tax policies, or economic indicators can have a profound impact. Developers and investors in this segment need to remain agile and adapt to the evolving market dynamics to maintain their competitive edge.
Despite these challenges, the overall real estate market in India remains strong. The introduction of new technologies, such as smart homes and sustainable building practices, is driving innovation and attracting a new generation of buyers. Additionally, the government's ongoing initiatives to promote infrastructure development and Ease of Doing Business are contributing to a positive outlook.
To ensure the sustained growth of the real estate market, it is crucial to balance the needs of different segments. This includes providing support to the affordable housing sector and creating a conducive environment for high-end developments. By addressing these challenges, the real estate industry can continue to thrive and meet the diverse needs of the population.
In conclusion, while the Indian real estate market has shown remarkable resilience, the challenges faced by the affordable and high-end segments cannot be overlooked. Stakeholders must work together to find innovative solutions and create a balanced and inclusive market that benefits all.
Frequently Asked Questions
What is the main concern in the affordable housing segment since the COVID-19 pandemic?
The main concern is the decline in the affordable housing sector due to a lack of developer interest in this segment, which can lead to a rise in informal settlements and social inequalities.
How has the high-end ₹10-50 crore segment been affected by the pandemic?
The high-end segment has seen a slowdown in transactions due to the global economic slowdown and travel restrictions, which have affected the purchasing power of potential buyers.
What are some positive trends in the Indian real estate market?
Positive trends include the introduction of new technologies like smart homes and sustainable building practices, as well as government initiatives to promote infrastructure development and Ease of Doing Business.
How can the real estate market address the challenges faced by different segments?
By providing support to the affordable housing sector and creating a conducive environment for high-end developments, stakeholders can ensure a balanced and inclusive market that benefits all.
What role does government play in the real estate market's growth?
The government plays a crucial role by introducing initiatives to promote infrastructure development, Ease of Doing Business, and by providing support to the affordable housing sector.
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