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Developers are curtailing affordable housing projects amid weak margins

According to PropEquity, new launches in the affordable housing segment have fallen over the last two years in both Tier-I and Tier-II cities

Housing
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Image: Bloomberg

Sanket Koul

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In a developing country like India, affordability remains a significant factor in making purchases, especially for long-term investments such as a home. However, data from several real estate consultancies suggests that while the demand for affordable or budget housing (costing up to Rs 40 lakh to Rs 50 lakh) remains high, sales in this segment have declined, particularly since the pandemic.
 
According to data shared by Anarock, the previously robust affordable homes category has seen a decline in overall sales in the top seven cities, dropping from about 38 per cent before the pandemic to 19 per cent in 2023.

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First Published: May 31 2024 | 6:03 AM IST

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