India’s top nine cities, where a majority of Indians migrate for jobs, are staring at a housing crisis as real estate developers have turned to the luxury housing segment and are not focusing on housing requirements for the affordable and mid-income category, according to a report.
The supply of homes in the affordable and mid-income category (priced at Rs 1 crore and below) has dipped by 36% in the last two years, from 3,10,216 units in 2022 to 1,98,926 units in 2024, with NCR, Mumbai, and Hyderabad as worst performers, said a report by real estate data analytics firm PropEquity.
The housing supply in the affordable and mid-income category stood at 2,83,323 units in 2023, a drop of 30% in one year, data showed.
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The top nine cities are Bengaluru, Chennai, Hyderabad, Mumbai, Pune, Thane, Navi Mumbai, Kolkata, and NCR.
According to the report, in the last two years, the supply of homes priced at Rs 1 crore and below has fallen by 69% to 13238 units in Hyderabad. During the same period, the supply of homes priced at Rs 1 crore and below has dipped by 60% to 6062 units in Mumbai and by 45% to 2672 units in NCR.
NCR, followed by Mumbai, supplied the least number of homes in this category. The total supply in NCR stood at 45503 units, with only 2672 units supplied in the Rs 1 crore and below category, while the total supply in Mumbai stood at 40,963 units, with only 6062 units supplied in this category.
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Samir Jasuja, Founder and CEO, PropEquity, said, “Today, 8% of India’s population lives in Tier 1 cities, and this number is expected to grow exponentially in the next five years as more people move to these cities for employment opportunities.
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