27% Jump in New Affordable Housing Project this Year
New Affordable Housing Project has seen a jump of 27 percent with Mumbai taking the lead. This follows the government’s decision to give infrastructure status to this asset class, says a new report by Cushman & Wakefield that covers top eight cities across the country.
More than 26,000 new units have been launched in 2017 so far. Of the total new launches in the affordable segment, 40 per cent were in Mumbai (10,500 units), followed by Kolkata and Pune. Hyderabad saw the biggest 813 per cent jump in the launch of affordable homes while Mumbai saw a 331 per cent increase.
However, overall residential unit launches recorded a decline of 33 percent and was at approximately 60,000 units in the first three quarters of 2017 (January – September). All cities, except for Mumbai, saw a decline in new launches, mostly due to the introduction of Real Estate Regulatory Act (RERA) and GST implementation.
Further, the first quarter of the year had the rollover challenges of demonetisation (November 2016) to grapple with leaving many developers no choice but to defer their launch plans.
With the government deciding to deliver 1.2 crore affordable houses by 2022, the affordable housing segment is expected to continue its momentum. The segment caters to the unmet demand of a large section of the Indian population looking for affordable housing options.
Mumbai saw one per cent jump in number of launches at over 19,400 units till September 2017. Mumbai was followed by Pune (8,400) and Bengaluru (8,200), both registering a year-on-year decline of 41 per cent and 48 per cent, respectively, in the total number of new residential units launched. Chennai saw the steepest decline in new launches, falling over 50 per cent in 2017 from the same period last year. The city only saw 2,700 new homes due to a massive slowdown in construction owing to prolonged political uncertainty and delayed notification of Rera in the state (Tamil Nadu).
Meanwhile, developers will focus on reducing their existing unsold inventories through more attractive discounts, payment plans, freebies and gifts in order to take advantage of the current festive season during which end-users go on a buying spree.
Source Link- http://www.business-standard.com/article/companies/27-jump-in-launch-of-affordable-houses-this-year-117101000033_1.html