Supply of mid-segment homes priced ₹1 crore and below dips 30% in top 9 cities in one year: PropEquity

Supply of mid-segment homes priced ₹1 crore and below dips 30% in top 9 cities in one year: PropEquity


As real estate developers shift focus on luxury housing, the supply of homes in the affordable and mid-income category priced 1 crore and below has dipped by 30% in the last year across nine cities to 1,98,926 units in 2024 from 2,83,323 units in the preceding year. The supply was 3,10,216 units in 2022, a report by PropEquity has said.

Supply of homes in the affordable and mid-income category priced <span class=
Supply of homes in the affordable and mid-income category priced 1 crore and below has dipped by 30% in the last year across nine cities (Representational photo)(Pixabay)

The top nine cities are ‘staring at a housing crisis,” said the report by the real estate data analytics firm.

The top nine cities are Bengaluru, Chennai, Hyderabad, Mumbai, Pune, Thane, Navi Mumbai, Kolkata and NCR.

Among nine cities, the fresh supply of homes costing up to 1 crore slipped 11 per cent in Bengaluru to 25,012 units during 2024 against 28,206 units in the preceding year. In Chennai, the new supply declined to 12,743 units from 13,852 units.

Hyderabad saw a 58 per cent fall to 13,238 units from 31,645 units, while Kolkata witnessed a 41 per cent lower supply to 10,785 units compared to 18,406 units.

The report showed that NCR saw a 43 per cent fall to 2672 units from 4726 units in the preceding year, and Mumbai witnessed a 31 per cent drop to 6062 units from 8763 the previous year.

According to the report, in the last two years, the supply of homes priced at 1 crore and below has fallen by 69% to 13238 units in Hyderabad. During the same period, the supply of homes priced 1 crore and below has dipped by 60% to 6062 units in Mumbai and by 45% to 2672 units in NCR.

NCR and Mumbai saw the least number of home launches in the 1 crore category

NCR, followed by Mumbai, supplied the fewest homes in this category. The total supply in NCR stood at 45503 units, with only 2672 units provided in the 1 crore and below category, while the total supply in Mumbai stood at 40,963 units, with only 6062 units supplied in this category, the report said.

In contrast, the supply of homes priced 1 crore and above has risen by 48% in the last two years in the top nine cities, with Bengaluru rising by 187%, Chennai by 127%, Kolkata 58%, Navi Mumbai 70%, Thane 53%, Pune 52% and Delhi-NCR 192%. However, in the last two years, Hyderabad and Mumbai saw a decline of 11% and 14% respectively.

Will this lead to a housing crisis?

“Today, 8% of India’s population live in tier 1 cities, and this number is expected to grow exponentially in the next five years as more people move to these cities for employment opportunities. If not attended to in time by the Government, the lack of supply in this category will lead to a housing crisis akin to Australia and Canada,” said Samir Jasuja, founder and CEO, PropEquity.

“Given rising migration and the growing number of nuclear families, it is estimated that 1.5 cr homes would be required in these cities in the next five years. To address this problem, the government must not just incentivise developers through tax cuts and subsidies to make affordable and mid-income housing a viable option but also provide benefits to homebuyers through home loan rebates and stamp duty cuts,” he added.



Source link

Join The Discussion

Compare listings

Compare