Supply of Affordable Housing Drops, But Demand Remains Strong: HDFC Capital's Vipul Roongta
HDFC Capital Advisors MD and CEO Vipul Roongta highlights the decrease in the supply of affordable housing units despite steady demand. Roongta urges real estate developers to focus on building homes in the Rs 50 lakh to Rs 1 crore range.
Affordable HousingReal EstateHdfc CapitalVipul RoongtaFicciReal Estate NewsFeb 11, 2025
According to Roongta, the supply of affordable housing has significantly decreased, but the demand remains robust.
This trend has led to a misinterpretation of the market, with some believing that demand for premium housing is on the rise.
However, the reality is that the supply of affordable units has dwindled, causing a decline in overall sales figures.
Roongta, who also serves as the Co-Chairman of the FICCI Committee on Urban Development & Real Estate, emphasized that the decline in the supply of housing units in the Rs 35 lakh to Rs 75 lakh price bracket has led to a drop in sales.
This decline has been misinterpreted as a decrease in demand for affordable units.
To illustrate this point, Roongta mentioned a recent project launched in Gurugram with a unit price of Rs 40 lakh.
The project received a staggering 150 times more applications than the number of units available, and these were paid applications, not broker applications.
Roongta stressed the importance of building housing for the masses.
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Frequently Asked Questions
What is the current trend in the supply of affordable housing?
The supply of affordable housing units has significantly decreased in major Indian cities, leading to a drop in overall sales figures.
Why is there a misinterpretation of the market demand for affordable housing?
The decline in the supply of affordable housing units has been misinterpreted as a decrease in demand, when in reality, the demand remains robust.
What price range should real estate developers focus on?
Developers should focus on building homes in the Rs 50 lakh to Rs 1 crore range, as this segment is expected to be the most in demand.
What has been the impact of the post-COVID era on the real estate market?
The post-COVID era has seen a trend of premiumization across various sectors, including real estate, with developers shifting towards projects that offer higher returns with less effort.
How has the housing market performed in 2024?
According to PropEquity, housing sales dropped by 9 percent to nearly 4.71 lakh units in 2024 across nine major cities, and new supply fell by 15 percent to 4,11,022 units, primarily due to under-activity in two quarters influenced by general elections and the monsoon season.
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