The coronavirus crisis and the ongoing lockdown in India is likely to severely affect the country's affordable housing sector, according to a report by Anarock Property Consultants. It notes that around 6.1 lakh affordable housing units were under construction across seven major cities when the 21-day nationwide lockdown was announced (on March 24 midnight), which are now stalled.
"The COVID-19 pandemic is all set to derail the growth momentum of affordable housing in 2020. This will be one of the worst-affected segments. As many as 6.1 lakh affordable units were under construction across top 7 cities when the lockdown was announced. This is over 39 per cent of the total 15.62 lakh under-construction units in the top 7 cities -- the highest share of all budget categories," the report says.
It states that while the overall unsold housing inventory is likely to shrink by 1-3 per cent in 2020, the unsold affordable stock may actually increase by 1-2 per cent during this period.
This is in sharp contrast to the trend in the past few years when the demand for the affordable housing units has been higher than the higher-end properties.
Comments