According to a study by Cushman & Wakefield, the top eight cities including Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune, recorded new launches of 61,847 units during January-June 2016, out of which those in the affordable segment were 17,130 units. The number of units launched in the affordable housing segment increased by 97%, up from 8,698 units in H1 2015.
The total number of launches recorded a 17% growth in H1 2016 to 61,847 units, from 52,782 units in the corresponding period, it said. The mid-income segment witnessed a growth of 10%, from 32,997 units to 36,267 units.
The high-end segment witnessed a decline of 29% in new launches, to 7,525 units from 10,662 units, while 925 units were launched in the luxury segment against 425 in the corresponding period in 2015, said the report.
See also: 24,000 residential units launched during Apr-Jun: Study
“It is heartening to see that the demand for this segment, which was neglected for a very long time, is now being catered to as this formed a very large component of latent demand. The uptake of affordable housing in the market, will have a cascading impact on the overall economy at large,” Cushman & Wakefield’s managing director (India), Anshul Jain said.
Reasons, for growth in affordable housing
The rise in the launch of affordable housing, can be attributed to a steady demand for this segment of housing in key cities of Bengaluru, Delhi NCR and Mumbai, he said. “Going forward, we expect to see more affordable housing projects, given that there is a cost benefit in creating these units. The time taken from ground breaking to completion, is lower than that for the mid or high-end apartments,” Jain added.
He also pointed out that sales can happen a lot faster in this segment, thus, helping developers to recover their costs earlier than usual. “Further, with the government defining the affordable space as 30 sq metres in tier-1 and 60 sq metres in tier-2 and the announcement of benefits for development of such apartments, we expect this segment of residential housing to grow,” he said.
According to the report, the city-wise number of units launched in the affordable housing segment, stood at:
- Bengaluru – 4,155
- Pune – 4,170
- Delhi NCR – 2,985
- Ahmedabad – 2,445
- Kolkata – 2,000
- Mumbai – 1,266
- Hyderabad – 109.
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