Slump in Affordable Housing Sales: A Growing Concern for Top Indian Cities
Sales of affordable homes priced up to Rs 60 lakh each have fallen 4% in eight major cities, including Mumbai, Bengaluru, and Delhi-NCR, due to lower supply and higher demand for luxury apartments.
Affordable HousingIndian Real EstatePropequityLuxury ApartmentsMumbaiBengaluruDelhi NcrReal Estate MumbaiJun 16, 2024
This downward trend is attributed to the lower supply of affordable homes and higher demand for luxury apartments. Builders are increasingly focusing on launching luxury projects, which offer higher profit margins. As a result, the fresh supply of affordable homes declined to 33,420 units during January-March 2024, down from 53,818 units in the year-ago period.
Historical data from PropEquity reveals that sales of affordable homes have been inconsistent over the years. In 2019, sales stood at 2,26,414 units, which fell to 1,88,233 units in 2020 due to the COVID-19 pandemic. However, sales rebounded in 2021 and 2022 to 2,17,274 units and 2,51,198 units, respectively. In 2023, sales declined again to 2,35,340 units compared to the preceding year.
A city-wise analysis of the data reveals that sales of affordable homes rose in MMR to 28,826 units during January-March 2024, up from 23,401 units in the year-ago period. However, sales fell in Pune, Ahmedabad, Hyderabad, Chennai, and Bengaluru. In contrast, sales rose in Kolkata 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 in the last fiscal year.
The decline in affordable housing sales is a growing concern for top Indian cities, which are struggling to provide adequate housing options to their growing populations. The government and real estate developers need to work together to address this issue and ensure that affordable housing options are available to all.
Frequently Asked Questions
What is the primary reason for the decline in affordable housing sales in top Indian cities?
The lower supply of affordable homes and higher demand for luxury apartments are the primary reasons for the decline in affordable housing sales.
Which cities witnessed a decline in affordable housing sales?
The cities that witnessed a decline in affordable housing sales are Pune, Ahmedabad, Hyderabad, Chennai, and Bengaluru.
What is PropEquity, and what does it do?
PropEquity is a leading real estate data analytics firm that provides analytics, data, and deal flows covering the Indian real estate industry.
How many projects does PropEquity track across India?
PropEquity tracks over 1,73,000 projects of 57,500 developers across 44 cities in India on a real-time basis.
What is the growth rate of PropEquity's total income in the last fiscal year?
PropEquity reported a 37% growth in total income to Rs 44.17 crore in the last fiscal year.
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