Supply of affordable homes priced up to Rs 60 lakh in eight major cities fell by 38 per cent in January-March

New Delhi. During the January-March quarter of this year, the new supply of affordable houses priced up to Rs 60 lakh in eight major cities has decreased by 38 percent to 33,420 units. The reason for this is that builders are focusing on building luxury i.e. expensive flats. This information has been given in a report by PropEquity, a company that analyzes real estate data. PropEquity said that the reason for the decrease in the supply of affordable houses is the increase in the cost of land and construction. Due to this, the construction of affordable houses is no longer a very profitable deal.

According to data from PropEquity, new supply of homes priced up to Rs 60 lakh in the country’s top eight cities during January-March, 2024 stood at 33,420 units, as against 53,818 units in the same period a year ago. These eight cities are – Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Kolkata, Pune and Ahmedabad. The data shows that new supply in this price range declined by 20 per cent during the calendar year 2023 and the declining trend continued in the first quarter of this year as well. Sameer Jasuja, Chief Executive Officer (CEO) and Managing Director, PropEquity, said, “The number of affordable residential units launched in the country’s top eight cities is declining significantly. Only 1,79,103 homes priced below Rs 60 lakh were launched in 2023. This is 20 per cent less than the 2022 figure of 2,24,141 units.”

He said that this trend is expected to continue in 2024 as well. Jasuja said, “There are many reasons for this decline. Due to rising real estate prices (up to 50-100 percent in some cities in the last two years) and rising construction costs, affordable housing projects are no longer a very profitable deal for real estate companies.” He said that apart from this, after the pandemic, people now want bigger houses. They also get higher margins on these. Expressing concern over this trend, Nitin Gupta, Secretary, CREDAI NCR, Bhiwadi-Neemrana, said that there is a need to give priority to the construction of affordable houses to fulfill the dream of home for the low and middle income group people.

According to data from PropEquity, new supply of homes priced up to Rs 60 lakh in Mumbai Metropolitan Region (MMR) during January-March declined to 15,202 units from 22,642 units in the same period a year ago. Supply in Pune fell from 12,538 units to 6,836 units. New supply in Ahmedabad fell from 5,971 units to 5,504 units. In Hyderabad, it fell from 2,319 units to 2,116 units. In Chennai, it fell from 3,862 to 501 units. New supply in Bengaluru declined from 3,701 units to 657 units. New supply in Kolkata declined from 2,747 to 2,204 units. However, new supply of homes priced up to Rs 60 lakh in Delhi-NCR increased to 400 units from 38 units in the same period a year ago.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.



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