As the government continues to lay emphasis on affordable housing, markets like the Mumbai Metropolitan Region (MMR) and Delhi-NCR have contributed a whopping 55 per cent share of the overall new budget housing supply between 2013 and 2018, a recent survey said. According to a survey jointly conducted by Anarock Property Consultants and CII, out of the total new supply of 19.9 lakh units between 2013 to 2018, nearly 38 per cent or 7.65 lakh homes catered to the affordable housing segment.
The report also mentioned that out of the 7.65 lakh units, total absorption is estimated to be 5.95 lakh units with NCR, MMR and Pune witnessing the highest volumes of absorption. "NCR, MMR, and Pune account for the top three active markets in terms of supply and absorption owing to the high rate of urbanization and industrial developments," the report said.
As per the report, pan-India affordable supply share increased from 35 per cent in 2013 to 45 per cent in 2017 and was recorded at 40 per cent in 2018, due to the government initiatives to improve the affordable housing stock. "The Housing for All by 2022 mission threw a much- needed lifeline to the affordable housing segment. The term affordable has become respectable and builders who earlier shied away from it now hold huge portfolios in this category.
This segment grew tremendously on the back of multiple sops introduced to both buyers and developers over the last five years," Anarock Property Consultants Anuj Puri said. The report further noted that within the affordable housing segment (units priced below Rs 40 lakh), Rs 20-30 lakh budget is predominant across most of the cities and accounts for 39 per cent of the supply in the affordable housing segment, which is mainly in cities like MMR, Pune, Hyderabad, and Kolkata.
"The demand for this budget segment in MMR and Pune is driven by industrial developments in the cities. While Kolkata is a price-sensitive market, the pharma industrial base in fringes of Hyderabad is driving the demand for this segment," the report said. The report further pointed out that Rs 30-40 lakh budget accounts for 35 per cent of the supply and is dominant in cities such as NCR and the IT-ITeS hubs of Bengaluru and Chennai.
"Affordable housing was given the much-coveted infrastructure status, and the very definition of affordable housing has been tweaked to accommodate more inventory under this key category. Moreover, the previously highly speculative markets of NCR and MMR have been tamed and are, in fact, leading the thrust of affordable housing today," Puri said.
(With inputs from agencies.)