• Fri. Dec 8th, 2023

Affordable home sales in Hyderabad fall in first year 2023: Report

Affordable home sales in Hyderabad fall in first year 2023: Report

Hyderabad: According to the latest ANAROCK research released on Sunday, 27,850 housing units across all budget segments were sold in Hyderabad during the first half of 2023.

Interestingly, only 685 units of affordable houses priced below Rs 40 lakh were sold, a mere 2.5 per cent share of the total. On the other hand, MMR, Pune and NCR saw the latest affordable housing supply in H1 2023 among the top seven cities, collectively accounting for 87 per cent of all affordable supply share.

If we consider the past trends, the overall share of sales in the affordable segment has declined significantly in Hyderabad, especially when the share of sales of these affordable homes is 24 percent in 2021.

Before the pandemic, in 2019, the sales share of affordable homes was 23 percent, but in 2022, sales have dropped significantly, indicating a decline in demand for affordable homes in the city.

Post-pandemic, relatively affordable property prices in Hyderabad coupled with increasing demand for larger spaces have shifted the focus of homebuyers towards mid and premium segments, luxury segment and other budget segments.

While the Indian luxury home segment is firing on all cylinders, affordable housing is on the wane due to pandemic-induced demand changes and various other factors.

Supply and demand for affordable housing are shrinking, their research data finds.

ANAROCK Chairman Anuj Puri said, “The total sales share of this old poster-boy segment has declined from 31% in the same period in 2022 to around 20% in H1 2023.”

About 2.29 lakh units were sold in the top 7 cities in H1 2023, of which 20 percent or about 46,650 units were affordable homes. However, in H1 2022, around 1.84 lakh units were sold, with over 31 per cent or around 57,060 units falling in the affordable segment.

As for affordable home buyers, most find themselves postponing purchase decisions as real estate prices have increased over the past year.

Lower demand is also reflected in the new supply of affordable housing as developers focus on mid-range, premium and luxury projects.

The report indicates that the share of total new supply in the affordable segment in the top seven cities has declined from 23 per cent in 2022 to 18 per cent in H1 2023.

This post was last modified on July 24, 2023 at 3:34 pm

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