Supply of Affordable Homes Drops by 30% in 2024: PropEquity Report
In a significant shift in the real estate market, the supply of homes priced up to Rs 1 crore has seen a substantial decline of 30% in 2024, according to a recent report by PropEquity. The report highlights the growing gap between demand and supply, raisi
Affordable HousingReal EstateProperty MarketPropequityConstruction CostsReal Estate NewsJan 28, 2025
This decline underscores a growing disparity between the demand for affordable housing and its availability, particularly in major urban centers.
PropEquity, a leading real estate analytics firm, conducted an extensive study that analyzed data from major cities across the country.
The report highlights that this reduction in supply is a culmination of several factors, including increased construction costs, regulatory challenges, and a shift in developer focus towards higher-end properties.
According to the report, cities like Mumbai, Delhi, and Bengaluru have witnessed the most significant impact.
In Mumbai, the number of homes priced up to Rs 1 crore has dropped by 40%, while in Delhi and Bengaluru, the decline is around 35% and 30%, respectively.
This trend is troubling for first-time buyers and low-income families who are increasingly finding it difficult to enter the property market.
The report also points out that the supply of affordable homes has been consistently declining over the past few years.
However, the impact in 2024 is particularly pronounced due to the economic slowdown and the ongoing pandemic, which have further exacerbated the situation.
Construction costs have risen significantly, driven by increased prices of raw materials and labor.
Additionally, stringent regulations and compliance requirements have added to the burden, making it less attractive for developers to build affordable properties.
Many developers are now focusing on high-end projects, which offer better returns and are less affected by market volatility.
The decline in supply has led to a rise in property prices, making it even more challenging for buyers to find affordable homes.
This trend is particularly concerning in a country where a large segment of the population is still struggling to afford basic housing.
PropEquity suggests that policymakers and the real estate industry need to collaborate to address this issue.
Some potential solutions include offering incentives for developers to build more affordable homes, simplifying regulatory processes, and providing financial assistance to first-time buyers.
The report calls for a more balanced approach to housing development, ensuring that the needs of all segments of the population are met.
It highlights the importance of creating a supportive ecosystem that encourages the development of affordable housing while also ensuring the sustainability of the real estate market.
In conclusion, the 30% drop in the supply of homes priced up to Rs 1 crore in 2024 is a clear indicator of the challenges facing the real estate market.
Addressing this issue will require a concerted effort from all stakeholders, including the government, developers, and financial institutions, to ensure that affordable housing remains a viable option for all segments of the population.
Frequently Asked Questions
What is the main finding of the PropEquity report?
The main finding of the PropEquity report is that the supply of homes priced up to Rs 1 crore has fallen by 30% in 2024.
Which cities have been most affected by this decline?
The cities most affected by this decline are Mumbai, Delhi, and Bengaluru, with Mumbai seeing a 40% drop, Delhi a 35% drop, and Bengaluru a 30% drop.
What are the key factors contributing to the decline in affordable housing supply?
The key factors contributing to the decline in affordable housing supply include increased construction costs, regulatory challenges, and a shift in developer focus towards higher-end properties.
How has the economic slowdown and pandemic affected the real estate market?
The economic slowdown and pandemic have exacerbated the situation by increasing construction costs and reducing the availability of affordable homes, making it more challenging for buyers.
What solutions does PropEquity suggest to address the issue?
PropEquity suggests offering incentives for developers to build more affordable homes, simplifying regulatory processes, and providing financial assistance to first-time buyers.
Related News Articles
Discover Dirt Cheap European Real Estate with a Catch
Get ready to own a piece of European real estate for a steal, but there's a catch. From Sweden to Italy and Germany, find out how you can own a home or plot of land for pennies on the dollar, but be prepared for some strings attached.
Indian Real Estate Market Sees Strong Demand, Oberoi Realty Records Impressive Q1 FY25 Results
Oberoi Realty Limited has reported a consolidated revenue of Rs 1,441.95 crore for Q1 FY25, solidifying the Indian real estate market's position as a preferred investment avenue.
Top REITs for Income Generation in 2024
Discover the best REITs for income generation, featuring top players in the real estate market, strong dividend yields, and growth prospects.
Shah Rukh Khan Seeks Permission to Expand Mannat with Two Additional Floors
Shah Rukh Khan, the iconic Bollywood actor, has filed an application to add two more floors to his iconic residence, Mannat, in the bustling city of Mumbai. This move is part of a larger plan to enhance the living space and amenities for his family. The e
Pune's Rapid Urban Growth: Real Estate Boom and Its Impact on Residents
Pune, a city known for its rapid urbanization and real estate development, is facing the challenges of unbridled growth. The surge in high-rise constructions and massive infrastructure projects is altering the lives of residents, raising concerns about en
Community Protests Halt Housing Project Near Madambakkam Lake Over Flooding Fears
Residents in Madambakkam, Chennai, have banded together to stop a housing project near the local lake, voicing concerns over potential flooding. Despite the developer's assurances, the community remains skeptical and determined to protect their area.