Pune: As supply for low-cost housing dries up, demand remains high

Economic housing as per definition are units which are priced at less than Rs 40 lakh. The central government had pushed for economic housing through various schemes. Pradhan Mantri Awas Yojana is the flag ship scheme which allows for the construction of such houses.

Prior to the pandemic, affordable housing was a booming section, with builders lining-up in queue for such projects.

Post pandemic, Anuj Puri, chairman Anarock said the affordable housing faced the sharpest fall out. “Our data shows that affordable housing sales share plummeted from 38% in 2019 to 18% in 2024, while its supply share dropped from 40% to 16% in the same period. However, a 19% dip in unsold stock hints at sustained demand led by end users,” he said.

In the last three years, Pune had seen an unsteady supply in terms of economic housing. Thus Pune had reported 13,285, 15,005 and 11,425 units of economic housings launched in 2022, 2023 and 2024 respectively. But sales data showed demand for such housing remains high.

Manish Jain, the newly elected President of CREDAI Pune Metro, said supply is low because it was not possible to provide housing under the present definition of affordable housing due to rising input costs. “Post pandemic, the prices of essential raw material has increased by about 45% and land prices have also gone up. Now further with the increased RR rates, affordable housing (less than Rs 45 lakh per unit) in its present definition is not possible to achieve, especially in cities like Pune,” he said.