Supply of Homes Priced Up to ₹1 Cr Falls 30% in 2024: Report
The Indian real estate market has been witnessing a significant shift in recent years, with a growing demand for affordable housing. However, a recent report by PropEquity has revealed a shocking decline in the supply of affordable homes priced up to ₹1 crore across nine major cities in India. According to the report, the supply of such homes has fallen by a staggering 30% in 2024, dropping from 2,83,323 units in 2023 to 1,98,926 units in 2024.
This decline is a cause for concern, as it may exacerbate the existing housing crisis in the country. The report highlights that the demand for affordable housing remains strong, with a large segment of the population still struggling to find affordable homes. The decline in supply is likely to lead to a further increase in housing prices, making it even more difficult for people to afford a home.
On the other hand, the report also reveals that there has been a significant increase in the supply of luxury housing, with a 48% growth in 2024. This trend is likely to continue, as developers focus on building high-end projects that are more profitable than affordable housing.
The decline in affordable housing supply is attributed to various factors, including rising construction costs, policy constraints, and a lack of incentives for developers to build affordable homes. The report highlights that the government needs to take urgent action to support affordable housing development, including providing tax incentives, subsidies, and relaxation of norms.
The impact of this decline on the economy and society will be significant. Affordable housing is critical for the social and economic well-being of a nation, as it provides a basic necessity for people to live and work. The lack of affordable housing can lead to social unrest, as people are forced to live in slums and informal settlements.
Furthermore, the decline in affordable housing supply will also have a detrimental impact on the economy. The construction industry is a significant contributor to the country’s GDP, and a decline in affordable housing construction will lead to a reduction in employment opportunities and economic activity.
The report highlights that the government needs to take a proactive approach to address the issue of affordable housing. This includes providing incentives for developers to build affordable homes, relaxing norms and regulations, and increasing funding for affordable housing projects.
The government can also consider policies such as rent control, which can help to reduce the burden on low-income households. Additionally, the government can provide subsidies and grants to developers to build affordable homes, making it more viable for them to do so.
In conclusion, the decline in affordable housing supply is a significant concern that needs to be addressed urgently. The government and developers need to work together to provide affordable housing options to the masses. The report highlights that the government needs to take a proactive approach to support affordable housing development, and developers need to focus on building affordable homes rather than luxury projects.
The decline in affordable housing supply is a wake-up call for the government and developers to prioritize affordable housing. As the report suggests, the government needs to take urgent action to support affordable housing development, including providing tax incentives, subsidies, and relaxation of norms.
In the meantime, homebuyers are left to navigate a complex and challenging market, where the supply of affordable homes is dwindling and prices are rising. It is essential for the government and developers to work together to provide affordable housing options to the masses, ensuring that everyone has access to a safe and secure home.
Source: https://trak.in/stories/supply-of-houses-costing-rs-1-crore-or-less-decrease-30-in-top-9-cities/
