ANAROCK data shows Chennai, Pune and MMR saw the highest decline in unsold affordable housing stock.
MUMBAI, Apr 19 (The CONNECT) - While the new supply of affordable housing has been shrinking over the last two pandemic years, demand remains healthy. ANAROCK data reveals that out of the total unsold stock across the top 7 cities, affordable housing inventory saw the most significant decline of 21% – from 2,34,600 units by Q1 2020-end to 1,86,150 units by Q1 2022-end.
Among the top 7 cities, Chennai, Pune and MMR saw the highest decline in their unsold affordable housing stock over the last two years, with 52%, 33%, and 27% reductions. These declines directly correlate to the intentional restriction of new budget housing supply.
The unsold stock of the ultra-luxury homes priced >INR 2.5 Cr in the top 7 cities witnessed a 5% decline in the same period – from approx. 41,750 units by Q1 2020-end to approx. 39,810 units by Q1 2022-end. MMR and Kolkata saw the maximum reduction in unsold ultra-luxury inventory, shedding 16% and 15%, respectively.
Anuj Puri, Chairman - ANAROCK Group, says, "Affordable housing took the biggest hit from the pandemic, with the first perceivable change being its declining share of new supply. Data reveals that out of approximately ` 70,480 units launched in the top 7 cities in Q1 2019, affordable housing had a 44% share. This segment's supply share has been declining y-o-y, reducing to 38% in Q1 2020 and further to 30% in Q1 2021. In Q1 2022, its share of new supply had declined to 25%.”
“That said, restricting new affordable housing supply has helped developers clear previous stock of unsold budget homes by at least 21% in the top 7 cities," says Puri. "This is the highest supply reduction among all budget categories – clearly reflecting an enduring demand for affordable homes.”
The ultra-luxury homes segment also fared well, seeing a 5% supply decline across the top 7 cities in the same period - despite the addition of significant new supply to address resurging demand for ultra-luxury homes in the pandemic. MMR and Kolkata saw the highest inventory reduction of 16% and 15%, respectively.
Notably, the premium and luxury segments (INR 80 lakh to INR 2.5 Cr) witnessed an increase in the total unsold stock in the same period.
As many as 6,27,780 units currently lie unsold across the top 7 cities. Of this, 1,86,150 units are in the affordable segment alone. Over the last two years, unsold affordable housing stock declined by at least 21%.
- Of the top 7 cities, Chennai saw the maximum decline of unsold affordable housing inventory with a 52% reduction - from 9,220 units by Q1 2020 to approx. 4,440 units by Q1 2022
- Pune witnessed a 33% decline in affordable unsold stock – from 46,630 units by Q1 2020 to approx. 31,090 units by Q1 2022
- In MMR, unsold affordable housing stock declined by 27% - from 69,210 units in Q1 2020 to 50,860 units by Q1 2022
- NCR saw its unsold affordable housing stock decline by 13% - to approx. 56,280 units by Q1 2022 from 64,430 units by Q1 2020
- In Bengaluru, unsold affordable stock fell by 10% - from 14,700 units in Q1 2020 to approx. 13,200 units by Q1 2022
- Hyderabad saw a 5% decline in its unsold affordable stock – from 3,370 units in Q1 2020 to approx. 3,190 units by Q1 2022. Hyderabad has the lowest unsold affordable inventory among the top 7 cities
- In Kolkata, unsold affordable stock remained unchanged at approx. 27,100 units by Q1 2022