What ails India's affordable housing sector? Anarock's Anuj Puri weighs in
The affordable housing sector in India, is facing significant challenges as the cost of construction rises, impacting both supply and demand. Anuj Puri, Chairman of Anarock Property Consultants, recently shed light on the critical issues plaguing this segment of the real estate market.
India's affordable housing sector is grappling with considerable challenges as construction costs soar, altering supply and demand dynamics, said Anuj Puri, Chairman of Anarock Property Consultants.
The share of affordable housing, as a percentage of both the total supply and total sales has come down significantly from pre-COVID levels, Puri said. "I think there are three or four reasons for that. One is clearly that the cost of construction has gone up as a result of it that is being passed on to the buyer and hence the price limit at about Rs 40 lakh for affordable housing is getting breached,” he added.
Puri believes prices per square foot have also shot up due to a majority of buyers wanting bigger apartments. "As a result, the definition of Rs 40 lakh in affordable housing is getting breached," he pointed out.
He also highlighted the spike in home loan rates that is impacting affordability.
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However, Puri pointed out the government's persistent effort to improve the reach of affordable housing,
“The government of India is continuing to put in a tonne of investment on the affordable housing, I mean, they have sanctioned nearly 1.18 crore housing units on the affordable housing and nearly delivered 77 lakhs and given it out on the affordable housing," Puri said expressing hope there will be another financing scheme that comes out in the near future.
Also, the Nifty Realty Index is the top sectoral gainer on Tuesday. Meanwhile, the Nifty Realty Index was among the top sectoral gainers reaching its highest level since 2008. The gains were largely backed by stocks like Phoenix Mills, Keystone Realtors, Puravankara, and Ajmera Realty, which reported healthy Q2 business.
(Edited by : Shweta Mungre)
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