Affordable housing derailed, 6.1 lakh homes impacted
Affordable housing growth has been derailed by Covid 19. The impact is such that 6.1 lakh units across top seven cities impacted.
By Varun Singh
Affordable housing had become the go word in the real estate industry. However, with the advent of the pandemic of Covid 19, it is one of the worst hit sector.
According to ANAROCK’s latest report., around 6.1 lakh units in this sector are impacted in top seven cities.
These 6.1 lakh units is 39% of total 15.62 lakh under-construction homes in the top seven cities.
NCR has the maximum under-construction affordable housing stock with more than 1.87 lakh units. Unsold stock in this budget category is nearly 64,430 units in NCR.
MMR is next with nearly 1.72 lakh units under construction. The unsold stock as on March 2020-end is 68,970 units.
In Pune, under-construction affordable housing stock is close to 1.31 lakh units, while unsold homes stand at nearly 46,630 units.
Bangalore has merely 16% (or 32,300 units) under construction in this category, out of a total of 2 lakh units under construction. This is the lowest share among all top 7 cities. Unsold affordable housing stock in Bangalore is currently just 14,800 units.
Hyderabad has the lowest share of both under-construction and unsold housing stock in this category. UC stock stood at 11,000 units and unsold inventory was just 3,370 units.
There are altogether over 6.1 lakh affordable units under construction across the top 7 cities, of which NCR and MMR alone account for nearly 59% – or 3.59 lakh units. These units were launched between 2013 to 2019. Both cities together also have a 57% share (approx. 1.34 lakh units) of the overall unsold stock of 2.34 lakh units in the budget homes category.
“The Government’s ‘Housing for All’ push coupled with multiple sops to buyers and developers brought on an avalanche of affordable housing projects in India,” says Anuj Puri, Chairman-ANAROCK Property Consultants.
“As much as 40% of the new supply added across the top 7 cities in the past few years was in the affordable segment (units priced < INR 40 Lakh). Resultantly, there is a huge under-construction supply of about 6.1 lakh units in the affordable segment,” Puri said.