Nearly half of the total housing demand in the primary residential market across eight major cities is for two-bedroom apartments costing up to Rs 45 lakh.

 

For January-March 2021 quarter, research revealed that housing sales across eight major cities declined only by 5% year-on-year (y-o-y) at 66,176 units, indicating that demand is inching back to pre-Covid level. When compared with the Q1 2020, five cities—Delhi-NCR, Kolkata, Chennai, Hyderabad, and Ahmedabad—saw growth in demand.

 

While analyzing the sales numbers of these eight cities, it was found out that around 45 percent of sales in January-March 2021 were contributed by the affordable housing segment—apartments priced below Rs 45 lakh.

 

Around 26% of the sales were in the Rs 45 to 75 lakh price bracket, 10% in Rs 75 lakh to Rs 1 crore and 19% above Rs 1 crore ticket size. As much as 44% of the total demand was for units with 2 BHK configurations.

 

The mid-segment (Rs 45–75 lakh price bracket) recorded a share of 27% of the total supply in the first quarter. More than Rs 75 lakh price bracket accounted for 28% of the total supply. Hyderabad and Ahmedabad witnessed 5% growth in January-March this year compared with the year-ago period.

 

Affordable housing segment has been a top performer since the last few years. The government is providing tax incentives and interest subsidy to boost demand in this segment and achieve its target of Housing for All.

 

Source: Construction World. Credits acknowledged PropTiger