Affordable Housing Sees Sales Dip
Real Estate

Affordable Housing Sees Sales Dip

Sales of affordable homes—units priced below Rs 5 million —dropped by nine percent year-on-year in the January–March 2025 quarter, according to a report by Knight Frank India. The slowdown comes as price-sensitive buyers face headwinds from rising property prices and elevated interest rates.

The report highlights that demand shifted towards mid and premium segments, with a noticeable decline in the affordable category in metros like NCR, MMR, and Hyderabad. 

Despite a broader upswing in housing demand, the entry-level segment struggled, primarily due to limited new supply and reduced affordability for first-time buyers.

Cities like Ahmedabad and Pune, however, continued to see moderate traction due to better pricing and government-led incentives. Meanwhile, developers are focusing more on higher-margin premium projects, widening the gap in supply-demand dynamics for affordable housing.

Knight Frank’s analysis calls for targeted policy interventions, such as interest subventions, subsidies, and focused credit support, to revive demand in this critical housing segment.

The trend underlines a growing concern around urban housing inclusivity, with affordable housing—once the sector’s backbone—losing pace amid India’s fast-evolving real estate landscape.  

Sales of affordable homes—units priced below Rs 5 million —dropped by nine percent year-on-year in the January–March 2025 quarter, according to a report by Knight Frank India. The slowdown comes as price-sensitive buyers face headwinds from rising property prices and elevated interest rates.The report highlights that demand shifted towards mid and premium segments, with a noticeable decline in the affordable category in metros like NCR, MMR, and Hyderabad. Despite a broader upswing in housing demand, the entry-level segment struggled, primarily due to limited new supply and reduced affordability for first-time buyers.Cities like Ahmedabad and Pune, however, continued to see moderate traction due to better pricing and government-led incentives. Meanwhile, developers are focusing more on higher-margin premium projects, widening the gap in supply-demand dynamics for affordable housing.Knight Frank’s analysis calls for targeted policy interventions, such as interest subventions, subsidies, and focused credit support, to revive demand in this critical housing segment.The trend underlines a growing concern around urban housing inclusivity, with affordable housing—once the sector’s backbone—losing pace amid India’s fast-evolving real estate landscape.  

Next Story
Infrastructure Transport

Chennai Metro Rail to Buy 32 Driverless 3-Car UTO Trains from Alstom

Chennai Metro Rail (CMRL) has signed a contract agreement to procure 32 driverless 3-car Unattended Train Operations (UTO) trains, totaling 96 cars, from Alstom Transport India. The contract, valued at Rs 15.38 billion, was officially awarded with the Letter of Acceptance issued on April 28.According to the agreement, the first train is expected to be delivered by February 2027 to the Phase-2 Depot of CMRL, where it will undergo 14 months of rigorous testing, including system integration and service trials. The remaining trains are scheduled for delivery between September 2027 and May 2028 and..

Next Story
Infrastructure Urban

Agartala Plans Dedicated Bicycle Lanes, Inclusive Roads in Smart City

Agartala is preparing to become more inclusive and environmentally friendly through plans to introduce dedicated bicycle lanes and barrier-free roads under its Smart City initiative. The city will implement dedicated cycling lanes along major routes, including a stretch from Agartala Airport to Lichubagan, as part of the Urban Mobility Agenda 2025. The initiative aims to provide safe, separate lanes for cyclists to encourage green, accessible, healthy, and affordable transportation, benefiting a wide range of residents such as students and working women.Alongside cycling infrastructure, there ..

Next Story
Real Estate

Telangana to Develop 80-acre Eco-Town Inspired by Japan’s Kitakyushu

The Telangana government has announced plans to develop an 80-acre Eco-Town inspired by Kitakyushu City in Japan, as part of its broader commitment to sustainable development. The initiative will serve as a model for environmentally responsible urban planning and industrial growth.The state will collaborate with Kitakyushu on a range of progressive initiatives such as achieving Net Zero emissions, riverfront development, adoption of circular economy principles, promotion of clean technologies, and driving digital innovation.The envisioned Future City will prioritise eco-friendly industrial zon..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?