Anarock releases ‘NCR – An Affordable Housing Goldmine’ report
Anarock Property Consultants today released its definitive research report ‘NCR – An Affordable Housing Goldmine’ at an event in Delhi. The report pitches the phenomenal expansion and urbanization rate of India’s largest planned region against the real estate industry’s affordable housing response. Intensely data-driven, this study lays bare the opportunities, shortcomings and challenges that Delhi-NCR presents to the real estate sector.
With the vast area under coverage and the presence of well-established services, manufacturing and automobile sectors, NCR’s massive employment generation yields a very high demand for affordable housing. This report takes a deep-dive into the supply-absorption trends of affordable housing in NCR, examines how existing policies and regulations have helped meet the huge gap, and frankly states the major challenges that impede the effective implementation of affordable housing projects in the region. It also identifies the key hotspots for affordable housing in NCR, studies the shortfall of urban infrastructure and basic amenities in the region, and takes a sharp look at how well NCR’s real estate market has re-oriented itself to the changing market conditions.
The report finds that overall 47% of units were launched in the affordable segment of NCR between Q1-2015 and Q3-2017, whilst the absorption was 44% of total during the same period. The affordable segment’s share of supply and absorption has constantly risen during the past few quarters. With the Government’s push on ‘Housing for All by 2022’ and sops offered to the affordable housing segment, the share is likely to rise in the future periods as well.
Within the affordable segment, 73% of supply between Q1 2015 and Q3 2017, came in INR 20 – 40 lakh segment. Gurugram, Greater Noida and Ghaziabad were the key contributors and accounted for 80% of this supply. Due to the sheer unfavorable economics in < INR 20 lakh segment, private players seem to have less focus on this sub-segment. In terms of absorption too, 76% of absorbed units were in the INR 20 – 40 lakh segment. Lack of supply from private players led to lesser absorption in < INR 20 lakh segment. With higher incentives, the Government can expect an increased participation in < INR 20 lakh segment as well.
Anuj Puri, Chairman, Anarock Property Consultants says, “Affordable housing has once again taken centre-stage in all real estate forum discussion, and deservedly has the undivided attention of all industry stakeholders including developers, investors, customers and the Government. As India’s largest urban agglomeration, Delhi-NCR is extremely important from every perspective – not least of all since it contributes as much as 7-8% of India’s total GDP. The region’s sheer size and exponential growth bring forth an immediate and ever-escalating requirement for affordable housing.”
The report also states that with the implementation of RERA, developers are now focusing on completing existing projects. The biopsy of NCR’s affordable segment reveals that there’s a minimal RTM inventory, which is a good indicator of the health of the market. Around 60% of under-construction inventory is likely to be completed in the next two years. This supply is likely to get a good response due to the Government’s emphasis on affordable housing and improving market conditions.