Mumbai: Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) centred on Delhi have seen the highest growth in sales and supply of affordable housing units in the last five years even as the overall residential market remained subdued during the period, a report by Anarock Property Consultant Ltd and Confederation of Indian Industry (CII) has found.
According to the report Affordable Housing: The Blue-Eyed Boy of Indian Real Estate released on Friday, around 7.65 lakh affordable housing units—costing less than ₹40 lakh each—were built between 2013 and 2018 in the top seven cities, accounting for nearly 38% of the total supply of residential units.
Of the total, 5.95 lakh units were sold during 2013-18, with Delhi NCR, Mumbai and Pune witnessing the highest absorption.
Delhi NCR and Mumbai Metropolitan Region together contributed 57% to the total affordable housing sales, the report stated. These two regions also contributed over 55% to the overall supply of budget homes in the country.
The report attributed the strong growth in affordable housing to various government initiatives under the "Housing for All by 2022" mission, including Pradhan Mantri Awas Yojana (PMAY) scheme, slum redevelopment programmes as well as introduction of several other reforms to boost affordable housing.
“The ‘Housing for All by 2022’ mission threw a much-needed lifeline to the affordable housing segment. The term 'affordable' has become respectable and builders who earlier shied away from it now hold huge portfolios in this category," said Anuj Puri, chairman and Anarock Property Consultants Ltd.
The affordable housing segment grew tremendously on the back of multiple sops introduced to both buyers and developers over the last five years, Puri added.
According to the report, affordable housing units costing between ₹20 lakh and ₹30 lakh accounted for 39% of the supply in the segment.
Share of affordable housing in Hyderabad and Bengaluru realty markets was the lowest at 15% and 17%, respectively, in 2018. These two cities are driven by IT companies that majorly employ white-collar employees, who can afford to purchase mid-range and high-end houses, said the report. “The anticipated 8%-10% annual growth of this segment is also luring investors," said Puri.