Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
A recently published report by ANAROCK reveals a concerning trend as the share of affordable housing in overall sales in H1 2023 has significantly reduced to approximately 20 percent, marking an 11 percent decline compared to the same period in 2022. Similarly, in the top 7 cities, the share of affordable homes in the overall housing supply has plummeted to a mere 18 percent in H1 2023, a stark contrast to the 23 percent it held in H1 2022. Adding to the distress, affordable home buyers have been burdened with almost 20 percent higher EMIs over the past two years, with floating interest rates for home loans up to Rs 30 lakh surging from 6.7 percent in mid-2021 to nearly 9.15 percent presently.
In an alarming development, the total interest payable over a 20-year tenure has surpassed the principal amount for many buyers. The adverse consequences are evident when considering a property worth less than Rs 40 lakh with a total borrowed amount of Rs 30 lakh for a 20-year tenure. Buyers who initially paid an EMI of Rs 22,700 in 2021, when interest rates were around 6.7 percent, now face an EMI of Rs 27,300, leading to the interest component being higher than the total principal amount.
The current structure of home loans heavily front-loads the interest payments, hindering homebuyers from building equity in the early years. This unfortunate scenario not only delays homeownership but also reduces the potential gains from property appreciation if the property is sold due to a lesser principal amount being paid off. This worrisome situation is not only detrimental to individual borrowers but also poses a risk to the broader housing market. To counter this setback, it becomes crucial for focused policy interventions, possibly in the upcoming Union Budget, to rejuvenate the affordable housing segment.
Additionally, ANAROCK Research indicates a decline in sales numbers across the top 7 cities, further exacerbating the situation. In H1 2023, only approximately 20 percent of the 2.29 lakh units sold were affordable homes, compared to over 31 percent in the corresponding period of 2022. To address the pressing issue of housing shortages and fulfil the vision of "Housing for All," the government must prioritize making affordable housing more attainable for a broader spectrum of buyers. With the majority of the urban housing shortage lying in the affordable homes category, accounting for over 80 percent of the shortfall, focused efforts are essential to bridge this gap. This calls for a concerted effort to revive and nurture this critical segment of the housing market.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy