Real estate consultant Cushman and Wakefield says that affordable housing segment grew by 6% in 2017 in top eight cities of India
The affordable housing segment proved to be the silver lining in an otherwise dull residential real estate market in 2017, which saw sharp decline in launches as well as sale due to note-ban decision as well as regulatory changes, an industry report said.
Real estate consultant Cushman and Wakefield said that affordable housing segment grew by 6% in 2017 in top eight cities of India, which include Delhi-NCR, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru, Ahmedabad and Pune. In comparison, overall residential project launches declined by 35%.
In Ahmedabad, overall housing unit launches fell sharply by more than 50% - from 9,700 units in 2016 to 4,680 units in 2017. As against this, affordable housing units fell just marginally from 2,590 units in 2016 to 2,532 units in the just concluded calendar year.
An apartment, priced up to Rs50-55 lakh, and catering mainly to the lower middle class, would typically fall in the category of an affordable housing unit in Ahmedabad.
Real estate sales were hit hard in early 2017 by the November 8, 2016 announcement of scrapping of high value currency notes of 500 and 1,000. This was followed by a few months of uncertainty ahead of roll-out of Real Estate Regulatory Authority (RERA) from May 1, and implementation of Goods and Services Tax (GST) from July 1. The sharp decline in real estate launches was a direct result of these changes.
Developers, however, said that barring the initial couple of months, the affordable housing segment remained steady throughout 2017. “2017 was the year of affordable housing. The central government also made various announcements making affordable housing lucrative both for buyers as well as developers. We expect affordable housing segment to continue doing well going ahead,” Jaxay Shah, president of real estate developers’ body CREDAI, said.
Chitrak Shah, MD at Shivalik Real Estate, also said that affordable housing segment was stable throughout the year, and has picked up pace in the past few months.
Cushman and Wakefield said that while developers grappled with the impact of business fundamentals such as RERA and GST, clarity brought in by the central government in affordable housing led to it doing well.
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An apartment, priced up to Rs50-55 lakh, and catering mainly to the lower middle class, would typically fall in the category of an affordable housing unit in Ahmedabad.
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