Demand up for affordable housing
New supply rises by 49% year-on-year at 53,037 units across top eight cities including Hyderabad
Hyderabad: Hyderabad along with Delhi-NCR, Kolkata, Chennai and Ahmedabad saw growth in affordable housing sales while cities such as Mumbai, Pune and Bengaluru witnessed fall in sales in Q1 (January-March) 2021, compared with the corresponding quarter of 2020. In terms of sales during the first quarter, Hyderabad stood third in the country among the top eight cities, with sales of 7,720 units, following Mumbai and Pune with 18,570 units and 13,730 units, respectively.
Almost half of the total housing demand in the primary residential market across eight major cities of India is for two-bedroom apartments costing up to Rs 45 lakh. According to the research carried out by PropTiger.com, housing sales across these cities declined only by five per cent year-on-year at 66,176 units amid the Covid pandemic, indicating that demand is inching back to pre-Covid level.
Around 26 per cent of the housing sales were in the Rs 45-75 lakh bracket, 10 per cent in Rs 75 lakh-Rs 1 crore and 19 per cent over Rs 1 crore ticket size. As much as 44 per cent of the total demand was for units with 2 BHK configurations. In line with the continuing trend, the share of ready-to-move-in flats in total sales increased during January-March 2021 compared to the preceding quarter.
“Affordable housing segment has been a top performer since the last few years. The government is providing tax incentives and interest subsidies to boost demand in this segment and achieve its target of Housing for All,” said Mani Rangarajan, Group COO, PropTiger.com.
Supply trend
Research shows that new supply in the country rose by 49 per cent year-on-year to 53,037 units across these eight cities during the first quarter of 2021. New supply continues to be concentrated in less than Rs 45 lakh category, accounting for 45 per cent share of the overall pie.
Hyderabad stood fourth in the country in terms of new launches during the first quarter of 2021 with 7,600 units, after Pune, Ahmedabad and Mumbai with 9,750 units, 9,060 units and 8,770 units respectively.
The mid-segment (Rs 45–75 lakh price bracket) recorded a share of 27 per cent of the total supply in the first quarter. More than Rs 75 lakh price bracket accounted for 28 per cent of the total supply.
“Weighted average prices for new launched projects in a majority of India’s top cities remained muted in the past few quarters, with prices appreciating marginally in the range of 1–3 per cent annually,” he added.
Funding projects
Rivali Park, located in suburban Mumbai, has become the first housing project in the country to have received funding under the SWAMIH (Special Window for Affordable & Mid-Income Housing) Fund. Union Minister for Finance & Corporate Affairs Nirmala Sitharaman, who handed over the possession to homebuyers recently, stated that the Government of India has stepped in to provide funding to the stressed affordable and mid-income housing projects.
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