NEW DELHI: Even as the government has been pushing aggressively for affordable housing, Covid-19 has severely dented its supply.
According to the latest report by real estate consultancy firm Anarock, out of the total new launches of 36,260 units across the top 7 cities in Q2 of 2021, the affordable segment (priced lower than Rs 40 lakh) contributed just 20% or 7,230 units.
This is a sharp drop from pre-covid times. In 2019, when a total of 2.37 lakh units were launched in top 7 cities, affordable housing segment accounted for a 40% share.
In 2020, when Covid-19 first struck India’s economy, the affordable segment’s share reduced to 30% of the total 1.28 lakh units launched.
While supply of affordable houses have come down, robust demand from premium buyers has forced developers to launch premium properties.
The premium segment (priced between Rs 80 lakh and Rs 1.5 Cr) accounted for 36% (13,130 units) out of total new launches in Q2 of 2021.
Real estate developers say that financial immunity of premium segment buyers from Covid-19 and their willingness to invest more in housing projects has resulted in increased launches.
“Those who had planned to buy a home within a certain price band are willing to stretch. Those who had saved up money and were looking to invest in a home maybe a few years from now have come forward and shown keen interest in investing right now,” said Ramani Sastri, Chairman & MD of Bengaluru-based Sterling Developers.