Unsold affordable housing stock declines 21% in 2 years, luxury inventory by 5%
Mumbai, April 19, 2022: While the new supply of affordable housing has been shrinking over the last two pandemic years, demand remains healthy. ANAROCK data reveals that out of the total unsold stock across the top 7 cities, affordable housing inventory saw the most significant decline of 21% – from 2,34,600 units by Q1 2020-end to 1,86,150 units by Q1 2022-end.
Among the top 7 cities, Chennai, Pune and MMR saw the highest decline in their unsold affordable housing stock over the last two years, with 52%, 33%, and 27% reductions. These declines directly correlate to the intentional restriction of new budget housing supply.
The unsold stock of the ultra-luxury homes priced >Rs 2.5 Cr in the top 7 cities witnessed a 5% decline in the same period – from approx. 41,750 units by Q1 2020-end to approx. 39,810 units by Q1 2022-end. MMR and Kolkata saw the maximum reduction in unsold ultra-luxury inventory, shedding 16% and 15%, respectively.
Anuj Puri, Chairman – ANAROCK Group, says, “Affordable housing took the biggest hit from the pandemic, with the first perceivable change being its declining share of new supply. Data reveals that out of approx. 70,480 units launched in the top 7 cities in Q1 2019, affordable housing had a 44% share. This segment’s supply share has been declining y-o-y, reducing to 38% in Q1 2020 and further to 30% in Q1 2021. In Q1 2022, its share of new supply had declined to 25%.”
“That said, restricting new affordable housing supply has helped developers clear previous stock of unsold budget homes by at least 21% in the top 7 cities,” says Puri. “This is the highest supply reduction among all budget categories – clearly reflecting an enduring demand for affordable homes.”
The ultra-luxury homes segment also fared well, seeing a 5% supply decline across the top 7 cities in the same period – despite the addition of significant new supply to address resurging demand for ultra-luxury homes in the pandemic. MMR and Kolkata saw the highest inventory reduction of 16% and 15%, respectively.
Notably, the premium and luxury segments (INR 80 lakh to INR 2.5 Cr) witnessed an increase in the total unsold stock in the same period.
|Available Luxury Supply (priced >Rs 2.5 Cr)|
|Cities||Q1 2020||Q1 2021||Q1 2022|
Affordable Housing Stock – City-wise Trends
As many as 6,27,780 units currently lie unsold across the top 7 cities. Of this, 1,86,150 units are in the affordable segment alone. Over the last two years, unsold affordable housing stock declined by at least 21%.
- Of the top 7 cities, Chennai saw the maximum decline of unsold affordable housing inventory with a 52% reduction – from 9,220 units by Q1 2020 to approx. 4,440 units by Q1 2022
- Pune witnessed a 33% decline in affordable unsold stock – from 46,630 units by Q1 2020 to approx. 31,090 units by Q1 2022
- In MMR, unsold affordable housing stock declined by 27% – from 69,210 units in Q1 2020 to 50,860 units by Q1 2022
- NCR saw its unsold affordable housing stock decline by 13% – to approx. 56,280 units by Q1 2022 from 64,430 units by Q1 2020
- In Bengaluru, unsold affordable stock fell by 10% – from 14,700 units in Q1 2020 to approx. 13,200 units by Q1 2022
- Hyderabad saw a 5% decline in its unsold affordable stock – from 3,370 units in Q1 2020 to approx. 3,190 units by Q1 2022. Hyderabad has the lowest unsold affordable inventory among the top 7 cities
- In Kolkata, unsold affordable stock remained unchanged at approx. 27,100 units by Q1 2022
UP Real Estate Appellate Tribunal’s “Online Justice Delivery System” awarded for Innovative Technology for Smart Governance by Computer Society of India
U.P. Real Estate Appellate Tribunal’s “Online Justice Delivery System” has been awarded for Innovative Technology for Smart Governance and selected...
52% NRIs see Indian commercial properties emerging as a new asset class
The Indian real estate segment demonstrates an upward trajectory with the projection to exhibit a growth rate of 9.2% CAGR...
Welspun Gp acquires Sintex BAPL
Mumbai, March 30, 2023: Welspun Group has acquired the plastic industry market leader, Sintex. Sintex’s auto business already has a...
Naiknavare Developers launches Avasa, new vertical of structured plots; commences e-commerce platform designed for plotting
Pune, March 30, 2023: Naiknavare Developers, renowned for its well-thought-out community-centric residential and commercial projects in Pune, Mumbai, and Goa, today announced it...
Residential demand up 14.2%, supply grew 1.9% YoY: Magicbricks PropIndex Report, Jan-Mar’23
New Delhi/Noida, March 30, 2023: Continuing on the path of resilience and overall growth, India’s residential demand increased 14.2% and...
Mahindra Life transacts with Alliance Gp for 9.24 acres at Mahindra World City, Chennai
New Delhi, March 29, 2023: Mahindra Lifespace Developers Ltd. (MLDL), the real estate and infrastructure development business of the Mahindra...
News2 weeks ago
Floor property prices to shoot up post Haryana Govt’s decision revoke construction of stilt plus four floors
News4 weeks ago
Samtel Avionics MD & CEO, Puneet Kaura takes over as the Chairman, CII Delhi State
News2 weeks ago
Office spaces demand move up in Faridabad
Developers Speak4 weeks ago
Mopa Airport is catapulting Sindhudurg into a thriving second home market
New Launches3 weeks ago
Magicbricks launches AI powered marketing solution tool, PMS
News4 weeks ago
Increased participation of Women needed in Real Estate, Construction sectors for $5 trillion Indian Economy: Naredco Mahi
News4 weeks ago
Embassy enters into strategic sale of its partial shareholding in Embassy Office Parks REIT, “Embassy REIT” to Bain Capital
New Launches2 weeks ago
CRC launches housing project, CRC Joyous