New Delhi
A report from ANAROCK-FICCI highlights a significant decline in the demand for affordable housing, primarily attributed to poor project locations, low construction quality, and small unit sizes. The Homebuyer Sentiment Survey for the first half of 2024 reveals that 53% of buyers in the affordable segment are dissatisfied with available options across cities.
Anuj Puri, Chairman of ANAROCK Group, noted that the primary reasons for this disenchantment include bad accessibility to locations, questionable construction quality, and constricted unit designs. The survey indicates that the shrinking supply of affordable housing has had a cascading effect, with the share of affordable homes in total launches dropping from 26% in 2021 to just 17% by September 2024. Before the pandemic in 2019, affordable homes constituted 40% of new projects.
The survey also reveals a shift in buyer preferences toward the stage of construction, with more buyers looking for newly launched homes rather than ready-to-move-in properties. Additionally, 57% of residential property investors are focusing on securing steady rental income, as rental rates have surged by over 70% in key markets over the past two years.
The demand for premium and luxury homes is on the rise, with 28% of respondents in the H1 2024 survey expressing a preference for homes priced between Rs.90 lakh and Rs.1.5 crore, up from 18% in the pre-Covid period. Moreover, there is a growing interest in residential plots, particularly in southern cities. About 30% of buyers in Chennai, 29% in Bengaluru, and 27% in Hyderabad prefer plots. In contrast, most buyers in MMR, NCR, and Pune continue to favor apartments.
