- 30% decrease in the supply of homes priced below ₹1 crore
- Reduced supply in 9 cities across the country
- Prop Equity report reveals this decline
As luxury real estate gains more prominence in the country, the availability of affordable and mid-range homes is also declining. According to a report by Prop Equity, the supply of homes priced below Rs 1 crore decreased by 30% last year. In 2023, the supply of homes in nine major cities across the country stood at 2,83,323 units, which dropped to 1,98,926 units in 2024. In 2022, the supply was 3,10,216 units. This indicates a steady decline in the availability of such homes. Based on this, the report suggests that an affordable housing crisis may have begun in these nine cities (Hyderabad, Bengaluru, Mumbai, Chennai, Pune, Thane, Navi Mumbai, Kolkata, Delhi).
In Hyderabad, a significant decline of 58% has been recorded. In the city of Nizams, the supply of homes in 2023 was 31,645 units, which dropped to 13,238 units by 2024. In Delhi, the supply decreased by 43%, from 4,726 units in 2023 to 2,672 units in 2024. Bengaluru saw a decrease of 11%, with the supply dropping to 25,012 units, compared to 28,206 units in the previous year. In Chennai, the supply decreased from 13,852 units to 12,743 units. Kolkata’s supply saw a 41% drop, falling from 18,406 units to 10,785 units. Mumbai also saw a 31% reduction in supply, with units falling from 8,763 to 6,062.
Overall, the report indicates that in the last two years, the supply of affordable homes in Hyderabad has decreased by 69%. Meanwhile, Mumbai saw a 60% reduction, and Delhi experienced a 45% decline.
In Delhi and Mumbai, there were very few new launches. In Delhi, out of a total of 45,503 new launches, only 2,672 were homes priced below Rs 1 crore. Similarly, in Mumbai, out of 40,963 launches, only 6,062 were homes priced below ₹1 crore. In contrast, the supply of homes priced above ₹1 crore in the nine major cities across the country increased by 48%. Bengaluru saw a 187% increase, Chennai 127%, Kolkata 58%, Navi Mumbai 70%, Thane 53%, Pune 52%, and Delhi saw an increase of 192%. Hyderabad, however, saw an 11% decline, and Mumbai saw a 14% reduction.
Is this leading to a housing crisis?
“Currently, 8% of India’s population lives in Tier 1 cities. Due to the migration of people to these cities for employment opportunities, it is expected that this number will drastically increase in the next five years. If the government doesn’t respond immediately and increase the supply of affordable and middle-income homes, there is a risk of facing a housing crisis similar to what occurred in Australia and Canada,” warned Sameer Jasuja, Founder and CEO of PropEquity.
Taking into account the rising migration and the growing number of micro-families, it is estimated that 1.5 crore homes will be needed in these cities in the next five years. To address this issue, he suggested that the government encourage developers by providing tax cuts and subsidies for affordable and middle-income homes, and also benefit homebuyers through home loan subsidies and exemptions on stamp duties.
