The share of affordable homes in the total fresh housing supply across seven major cities decreased from 40% in 2018 to 20% in 2022 due to various factors such as costlier land, low-profit margin, and lack of adequate availability of finance at a cheaper rate. Anarock data reveals that profit margins were already wafer-thin in affordable housing projects, and it has become more difficult to develop budget homes amid a rise in input costs such as cement, steel, and labour. The current demand is skewed towards apartments priced between Rs 40 lakh and Rs 1.5 crore, and the preferences of home-buyers have evolved from mere opulence and grandeur to sustainable, green, and technologically advanced living spaces.
According to Anarock data, the percentage of affordable homes in the total fresh housing supply across seven major cities decreased from 40% in 2018 to 20% in 2022. The fall in the share of affordable homes is attributed to factors such as costlier land, low-profit margin, and lack of adequate availability of finance at a cheaper rate. The total number of units launched in 2022 was 3,57,650, of which only 20% were in the affordable homes category, costing below Rs 40 lakh per unit. The trend of declining share continued even last year and the share fell to 20%. Anarock Chairman Anuj Puri stated that profit margins were already wafer-thin in affordable housing projects and it has become more difficult to develop budget homes amid a rise in input costs such as cement, steel, and labour. The current demand is skewed towards apartments priced between Rs 40 lakh and Rs 1.5 crore, and the preferences of home-buyers have evolved from mere opulence and grandeur to sustainable, green, and technologically advanced living spaces.
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