Amid decline in overall launches of new residential units, affordable housing segment in city’s real estate market has witnessed a rise owing to growing demand and the Central government’s push to affordable housing.New launches of affordable residential units in Ahmedabad increased by 20% during January-September 2017, states a research report by global property consultant Cushman & Wakefield.
According to the report, the affordable housing segment saw 2,532 new residential units being launched in Ahmedabad from January to September 2017 as compared to 2,106 units during the same period in 2016.
However, overall launches of new residential units in all categories (including midrange, high-end and luxury) dipped by 42% to 4,064 units in Jan-Sep 2017 from 6,972 units in the corresponding period last year. “Within this (affordable) segment, developers in Ahmedabad have created more compact units with higher configurations, which have seen greater traction with end users. About 60% of total launches in this year in the city has been in the affordable segment, indicating the demand for this segment was high and unmet earlier,“ said Anshul Jain, managing director, India, Cushman & Wakefield.
Stating that there are challenges for affordable housing projects in Tier 1 cities, where land costs and availability within established locations is very difficult, he added, “The high focus of the central government has resulted in the availability of more funding options for developers such as ECB (external commercial borrowing), FDI (foreign direct investment) and debt financing from national financial institutions at highly competitive rates.“
Out of the eight top cities surveyed across the country for the research report, Hyderabad topped the list with 813% jump in affordable housing launches, while Mumbai witnessed 331% rise. Cumulatively, there was 27% growth in affordable housing launches in all the eight cities, where 26,081 new units came to the market till September 2017 as against 20,485 in 2016 (JanSept).
When it came to overall launches of new residential houses, all cities, except Mumbai, witnessed reduction ranging from 30% to 51%