The residential real estate market witnessed a six-fold rise in the number of affordable projects unveiled in the first quarter of 2016, making a recovery from 2015 when there was a slump, according to a survey.
The new projects are cheaper than those unveiled one or two years ago, the survey, spanning eight major Indian cities, showed.
The cities surveyed are Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune.
Vast potential“Developers have come to realise that the vast potential of the affordable segment was remaining untapped. With strong emphasis on affordable housing by the government, tax incentives extended by the government as well as the cautious approach by end users in other segments, developers are betting on affordable segment,” said Shveta Jain, Executive Director, Residential Services, Cushman & Wakefield.
While the number of projects unveiled across the eight cities increased by 27 per cent to 31,200 units during the first quarter of 2016, the affordable housing segment accounted for 35 per cent as developers saw higher demand in this highly price-sensitive segment, according to a study done by Cushman & Wakefield Research, a global commercial and real estate services firm. It said that the share of the affordable segment rose to 22 per cent in 2015 from 17 per cent 2014. However, during the period under review, average introductory prices declined across major cities. They dropped the most in Mumbai, over two years since 2014, followed by Pune, Delhi-NCR and Kolkata.
Published - May 12, 2016 11:15 pm IST
