New Delhi: The coronavirus crisis and the ongoing lockdown in India will severely affect the country’s affordable housing sector, according to a report by Anarock Property Consultants.
The report noted that around 6.1 lakh affordable housing units were under construction across seven major cities when the 21-day nationwide lockdown was announced (on March 24 midnight), which are now stalled.
“The COVID-19 pandemic is all set to derail the growth momentum of affordable housing in 2020. This will be one of the worst-affected segments. As many as 6.1 lakh affordable units were under construction across top 7 cities when the lockdown was announced. This is over 39 per cent of the total 15.62 lakh under-construction units in the top 7 cities — the highest share of all budget categories,” said the report.
It noted that while the overall unsold housing inventory is likely to shrink by 1-3 per cent in 2020, the unsold affordable stock may actually increase by 1-2 per cent during this period.
The slowdown in the segment would be a major setback for the already subdued Indian realty sector, as this very affordable segment has been seen as the silver lining by the market players who have witnessed a number of blows and low demand in the past 5-6 years, largely in the luxury and mid-range properties. (IANS)
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