The last five years have proved to be fruitful for the real estate in India. Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) centered on Delhi have seen the highest growth in sales and supply of affordable housing units. According to a report, around 7.65 lakh affordable housing units costing less than ₹40 lakh each were built between 2013 and 2018 in the top seven cities, accounting for nearly 38% of the total supply of residential units. Out of the total, 5.95 lakh units were sold during 2013-18. The cities namely Delhi NCR, Mumbai, and Pune witnessed the highest absorption.
The report stated that Delhi NCR and Mumbai Metropolitan Region together contributed 57% to the total affordable housing sales. These two regions also bagged the limelight as both contributed over 55% to the overall supply of budget homes in the country. The various progressive initiatives by the Government in real estate have strengthened and attributed the growth in affordable housing. The initiatives include Housing for All by 2022 mission, Pradhan Mantri Awas Yojana (PMAY) scheme, slum redevelopment programmes as well as the introduction of several other reforms to boost affordable housing.
For instance, the Housing for All by 2022 mission threw a much-needed lifeline to the affordable housing segment in the country. The term 'affordable' has become respectable, and many builders have come up who now hold huge portfolios in this category. The affordable housing segment grew tremendously on the back of multiple sops introduced to both homebuyers and developers over the last five years. The affordable housing units costing between ₹20 lakh and ₹30 lakh has accounted for 39% of the supply in the segment.
On the other hand, the share of affordable housing in Hyderabad and Bengaluru realty markets has been considerably low. In the year 2018, the share was 15% for Hyderabad and 17% for Bengaluru. These two cities are driven by IT companies that majorly employ white-collar employees. They can afford to purchase mid-range and high-end houses. On a positive note, the anticipated 8%-10% annual growth of this segment is attracting investors.