Affordability of houses in Gurugram increased in last five years
Real Estate

Affordability of houses in Gurugram increased in last five years

As per the report released by Anarock Property Consultants on Tuesday, the average house size has decreased from 1,550 sq ft to 1,250 sq ft in the second half of the last decade.

Additionally, speculated purchasing and role of local developers dropped in this period while branded and registered developers with corporate backgrounds have taken centre stage.

As per the report released, housing in Gurugram shifted towards affordability, with homes getting cheaper and smaller in the 2016-2021 period and an emphasis on timely deliveries, a move away from the premium and luxury segments that ruled the sector from 2011 to 2015.

As per the report, in the last five years, the ticket size (investment per unit) of flats decreased from Rs 68 lakh to Rs 56 lakh.

The report also stated that about 52% of delayed housing projects in the nation are in the National Capital Region (NCR), with Greater Noida accounting for the maximum, at 26% (162,720 units) whereas, Gurugram accounts for 6.24% (40,380 units) of it.

The report stated that developers are also starting smaller projects. The average size of projects has dropped from 950 units to 650 units to enable faster completion and delivery.

City-based developers and experts agreed with the findings of the report, attributing the change to the introduction of a real estate regulatory act in 2016, demonetisation, affordable housing, market slowdown and predominance of end-users among buyers. The industry is also shifting towards consolidation, professionalism and corporatisation, with established brands entering the sector and improvement in the quality of investors.

The managing director of Chintels and spokesperson, Confederation of Real Estate Developer’s Associations of India (CREDAI) NCR, Prashant Solomon, told the media that in the past five years, housing has become more end-user driven. RERA (Real Estate Regulatory Authority) has changed developers' perspectives, and there is more accountability and clarity in project funding, development and delivery timelines. Home loan culture has decreased the involvement of speculation, adding that ticket sizes of flats and projects have been decreased for simple affordability and faster completion.

Gurugram-based experts told the media that the residential market witnessed a significant change over the last five to seven years, from an unorganised, highly speculative and overpriced market to an organised, consumer-driven affordable housing market. They said that the changes have been so much that currently, Gurugram has developed as a hub of affordable housing.

Vinod Behl, a city-based real estate expert, told the media that the central government’s changes, such as RERA, fully regulated the property market and efficiently ended speculative selling by banning pre-launch sales. Additionally, PMAY (Pradhan Mantri Awas Yojana) incentives were restricted, to just first-time buyers of houses up to Rs 45 lakh to check speculation and encourage affordable housing. The GST introduction by the Centre and later its rationalisation to 1% for affordable/mid-segment housing further boosted affordable housing.

Image Source


Also read: MRG to fund Rs 350 cr for affordable housing project

As per the report released by Anarock Property Consultants on Tuesday, the average house size has decreased from 1,550 sq ft to 1,250 sq ft in the second half of the last decade. Additionally, speculated purchasing and role of local developers dropped in this period while branded and registered developers with corporate backgrounds have taken centre stage. As per the report released, housing in Gurugram shifted towards affordability, with homes getting cheaper and smaller in the 2016-2021 period and an emphasis on timely deliveries, a move away from the premium and luxury segments that ruled the sector from 2011 to 2015. As per the report, in the last five years, the ticket size (investment per unit) of flats decreased from Rs 68 lakh to Rs 56 lakh. The report also stated that about 52% of delayed housing projects in the nation are in the National Capital Region (NCR), with Greater Noida accounting for the maximum, at 26% (162,720 units) whereas, Gurugram accounts for 6.24% (40,380 units) of it. The report stated that developers are also starting smaller projects. The average size of projects has dropped from 950 units to 650 units to enable faster completion and delivery. City-based developers and experts agreed with the findings of the report, attributing the change to the introduction of a real estate regulatory act in 2016, demonetisation, affordable housing, market slowdown and predominance of end-users among buyers. The industry is also shifting towards consolidation, professionalism and corporatisation, with established brands entering the sector and improvement in the quality of investors. The managing director of Chintels and spokesperson, Confederation of Real Estate Developer’s Associations of India (CREDAI) NCR, Prashant Solomon, told the media that in the past five years, housing has become more end-user driven. RERA (Real Estate Regulatory Authority) has changed developers' perspectives, and there is more accountability and clarity in project funding, development and delivery timelines. Home loan culture has decreased the involvement of speculation, adding that ticket sizes of flats and projects have been decreased for simple affordability and faster completion. Gurugram-based experts told the media that the residential market witnessed a significant change over the last five to seven years, from an unorganised, highly speculative and overpriced market to an organised, consumer-driven affordable housing market. They said that the changes have been so much that currently, Gurugram has developed as a hub of affordable housing. Vinod Behl, a city-based real estate expert, told the media that the central government’s changes, such as RERA, fully regulated the property market and efficiently ended speculative selling by banning pre-launch sales. Additionally, PMAY (Pradhan Mantri Awas Yojana) incentives were restricted, to just first-time buyers of houses up to Rs 45 lakh to check speculation and encourage affordable housing. The GST introduction by the Centre and later its rationalisation to 1% for affordable/mid-segment housing further boosted affordable housing. Image Source Also read: MRG to fund Rs 350 cr for affordable housing project

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