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Supply-demand gap for affordable housing in MMR
Despite considerable demand for affordable housing in the Mumbai Metropolitan Region (MMR), there is a significant supply gap in the low-income category, i.e. houses costing less than Rs 25 lakh. According to a Knight Frank and Naredco report, while demand for this segment is 67 percent, supply is only 22 percent. This is primarily due to the high cost of land, as well as better returns from other asset classes, which makes it unviable for real estate developers to undertake affordable housing projects in prime areas.
MMR registered high demand for affordable housing units with 67 percent demand concentration being registered for units less than Rs 25 lakh. The demand concentration for housing units in the range of Rs 25 to Rs 50 lakh was recorded at 13 per cent and units above Rs 50 lakh at 20 per cent.
The supply of housing units above Rs 50 lakh recorded the highest concentration at 44 per cent followed by units in the range of Rs 25 to Rs 50 lakh at 34 per cent. The supply concentration for housing units less than Rs 25 lakh was recorded the lowest at 22 per cent, clearly showcasing the huge supply gap for urban affordable housing in the region, it said.
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