Delhi-NCR builders ignore below Rs 20 lakh homes due to unfavourable economics: Report
NEW DELHI: Around 73% of the affordable homes launched in the Delhi-NCR region in the last three years are priced between Rs 20 lakh and Rs 40 lakh, with the below-Rs 20 lakh segment is lagging behind due to unfavorable economics, according to Anarock Property Consultants. In terms of sales too, around 76% of the total units sold between January 2015 and September 2017 were in the price range of Rs 20-40 lakh. "Due to the sheer unfavourable economics in < Rs 20 lakh segment, private players seem to have less focus on this sub-segment," said Anuj Puri, chairman, Anarock Property Consultants. However, Puri feels with higher incentives, the government can expect an increased participation in the below Rs 20 lakh segment as well. Around 244,000 units were launched in the affordable housing segment of NCR between 2012 and September this year, of which 76,000, or around 30%, were added between January 2015 and September 2017. Overall, 47% of the total homes launched in NCR were in the affordable segment between January 2015 and September 2017, while 44% of the total units sold were in the affordable segment during the same period. Gurugram, Greater Noida and Ghaziabad accounted for 82% of the overall affordable housing supply in NCR between January 2015 and September 2017. "The affordable segment’s share of supply and absorption has constantly risen during the past few quarters. With the government’s push on ‘Housing for All by 2022’ and sops offered to the affordable housing segment, the share is likely to rise in the future periods as well," said Puri. The share of affordable housing launches has risen from 21% in 2012 to 71% in 2017 as of September. The report suggests this massive rise heralds a positive future for affordable housing in NCR. Not only from a real estate supply perspective but also from the demand side, NCR seems well-poised to cater to the increasing affordable housing requirements.