Launches in the affordable housing segment in Delhi-NCR area has increased to 71 per cent in third quarter of 2017 as compared with just 21 per cent in 2012, according to a report.
“NCR’s real estate market has appropriately re-oriented to the changing market conditions. As per our research, the share of affordable segment launches has risen from 21 per cent in 2012 to 71 per cent in 2017 (as of Q3). This massive rise heralds a positive future for affordable housing in NCR. Not only from a real estate supply perspective but also from the demand side, NCR seems well-poised to cater to the increasing affordable housing requirements,” stated by Anarock research report titled ‘NCR — An Affordable Housing Goldmine’, which was released on Thursday.
The report defined affordable housing as units priced less than Rs 40 lakh. According to the report, around 2.44 lakh units were launched in the segment in NCR between 2012 and third quarter of 2017, of which 76,000 (around 30 per cent) were added between first quarter of 2015 and third quarter of 2017 only. “Within the affordable segment, 73 per cent of supply between Q1 2015 and Q3 2017 came in Rs 20-40 lakh segment. Gurgaon, Greater Noida and Ghaziabad were the key contributors and accounted for 80 per cent of this supply. Due to the sheer unfavorable economics in ‘less than Rs 20 lakh’ segment, private players seem to have less focus on this sub-segment,” the report stated.
With the vast area under coverage, presence of well-established services, manufacturing and automobile sectors, there is no dearth of employment opportunities in and around NCR.
Also, it noted that NCR’s physical infrastructure is improving by leaps and bounds, and peripheral areas are rapidly being connected to the major employment hubs.
The top five regions of NCR that have been classified as affordable housing destinations by the report are: Rajnagar Extension, Greater Noida West, Yamuna Expressway, Bhiwadi and Sohna. “These regions are not only the top affordable housing destinations in the respective city but also collectively account for 48 per cent of the affordable supply of NCR. Further, the identification was also based on the availability of large land parcels for future developments, existing connectivity to various parts of NCR along with significant planned infrastructural developments, proximity to industrial clusters and presence of basic social infrastructure and apt affordable housing supply,” it added.