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Delhi-NCR witnessed the highest demand for homes under affordable category
Real Estate

Delhi-NCR witnessed the highest demand for homes under affordable category

The Indian real estate sector is gradually healing back to health after going through a rough patch in recent years. This is particularly evident from the soaring demand for residential apartments around the Delhi-NCR region. In this context, it should be pointed out that this part of the country has registered the highest demand for homes under the affordable housing category. Incidentally, more developers are coming up with classy apartments that are within the affordability of property owners. 

The Delhi-NCR region has also enjoyed a balanced growth in the commercial real estate segment in the last few years. As a result, more families from other parts of the city are moving to this zone. Millennials, corporate employees and IT professionals constitute the major segments of people who are moving to such properties with their families. Given that people can enjoy all the basic amenities in these estates at an affordable price, they are inclined towards making the purchase.

Why are residents purchasing affordable homes? 

Affordable housing is all about offering residential complexes in gated communities, ensuring that the residents can enjoy all the necessary amenities. Although some developers include only the basic amenities in these estates, some projects also offer luxury amenities. These homes come at prices under INR 45 lakhs. Besides, the buyers can choose from different configurations. Besides, most of the residences are opting for affordable homes after the pandemic. In 2020, affordable housing projects accounted for as much as 40% of the demand for residential real estate. Before the pandemic, this share was around 31%. This indicates that after the pandemic, the demand for such homes has increased by 9%. 

Another interesting statistic reveals that Delhi NCR and Kolkata are the two most favourite areas for property owners to purchase affordable homes. Out of the overall demand for affordable housing in India, Delhi NCR accounts for around 38%. Next comes Kolkata, with 21% demand.

From the records, it is evident that between 2018 and 2020, 79,840 residential apartments were launched in Delhi NCR. Around half of these homes were from the affordable housing category. In 2020, the total number of residential units launched was 18,540. Affordable homes accounted for as much as 61% share among these properties.

Given that the pandemic has left an economic impact in the country, most of the property owners are going for affordable homes. Moreover, these homes come within the affordability of the mid and low-income groups.

Other cities witnessing a high demand for affordable homes

The industry experts believe that the supply of affordable homes in the county is in a perfect sync with the demand. In Gurgaon, 11,180 residential units were launched in 2020. Out of these, 6,590 homes belonged to the affordable category. Moreover, the demand for such units has also risen in Faridabad. This city accounted for 3,050 affordable units, followed by Bhiwani and Noida. Each of these two cities registered the launch of 900 units. However, in Ghaziabad, Noida and Delhi, no additional unit was included in the affordable sector. In terms of demand, Gurgaon leads the list, with 32%. Other cities to follow this suit include Noida, Delhi, Ghaziabad and Faridabad.

Government’s measures to boost demand for affordable homes

The government has also taken adequate measures to foster a higher demand for affordable homes in India. Incidentally, the Affordable Housing Policy 2013 was amended, under which the property buyers under the affordable housing category would be enjoying one parking space for cars each with each residential unit. Most importantly, this space would come free of cost. Therefore, families that own cars would be inclined towards purchasing these homes.

The new changes in norms have also benefited the real estate developers. Previously, affordable projects had to be developed in areas not exceeding 10 acres. Considering the inclusion of car parking spaces, the authorities have fixed the upper cap at 30 acres in this respect. This implies a higher profit margin for the real estate developers in each project. The inclusion of commercial areas in affordable homes would leave more profits to the developers. Since the launch of affordable homes, they had been struggling for decent profit margins.

The leading real estate developers are likely to venture into affordable housing, with the relaxed set of norms and greater profit margins on the cards. Therefore, the buyers would be enjoying more options in terms of configurations, floor areas and of course, amenities. The trend is likely to dominate the real estate market in the coming years. No wonder, the affordable housing segment would spearhead the Indian real estate sector significantly.

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