Affordable Housing

With uncertainties around the economy and jobs now stabilising, we are witnessing signs of growth in the real estate sector as well. Sales have started to pick up primarily driven by the affordable housing segment.

While Mumbai is the most expensive market, with affordability ratio of (61%), other cities like Ahmedabad, Chennai and Pune are relatively more affordable.

Average ticket sizes have grown to Rs 1.5-2 crore in the city up from around Rs 1 crore before the pandemic, developers and industry insiders say.

A surge in prices of steel, cement and other raw materials has hiked the construction cost of affordable housing schemes. This means home buyers will have to bear the additional cost burden.

This was known from the State Level Sanctioning and Monitoring (SLSM) committee meeting held via digital mode under the chairmanship of Additional Chief Secretary and Development Commissioner Suresh Chandra Mohapatra.

As per the amendments, the maximum area limit of project under affordable housing is increased from 10 acres upto 30 acres. The minimum area limit for setting up of Affordable Group Housing Colony has been reduced from 5 acres to 4 acres.

In Mumbai, areas like Andheri, Borivali, Ghatkopar, Mulund, Thane and MMR house middle income properties. Now, homebuyers in this segment require additional space for work from home purpose or for kids to study.

The mismatch between construction and money collected by developers from buyers has emerged as the biggest area of concern in the affordable housing segment.