Affordable housing in India: 44% units are unsold in top cities
Affordable Home is looking no more affordable. It is surprising to know that 44% of the housing units having the price tag of less than Rs. 35 lakh are lying unsold in 7 main Urban areas of India – Delhi-NCR, Mumbai, Pune, Bangalore, Hyderabad, Kolkata and Chennai. What comes first to the mind is over supply, but this could not be a reason as the demand in residential sector is anticipated to grow with the continuous mass migration to the tier 1 and tier 2 cities.
Affordable housing is for the low income group who needs the help of financial institutions to meet their need of housing. Probably the affordable housing in India is no more affordable for the targeted sector as home-loan rates have increased by 10-12% and the interest rates have gone up by 3 % in the last one year making an increase of almost 20 % in EMI.
Secondly, 30-40% of price hike in the last one year has created a situation of uncertainty, investors in the real-estate are suspecting of bubble formation in the market which can burst anytime leading to the decline in property prices. It is predicted by the experts that the prices may go down by 15% in residential properties around the peripheral areas of the main cities this year.
Source : Economic Times
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Is it true … i believe government should keep a check .. these real estate people have fueled the market with black money. People with money are buying one house after the other for the sake of investing and get the benefit of inflation.
I m planning to buy a house for myself but the problem is that all the affordable housing units available are very far from my work place .. rite now i m residing only 5 km from my office and still it takes me 30-45 minutes to reach my office. my search is still on, lets c if we see any upcoming affordable housing in vicinity to my workplace
I believe that we will see some growth in affordable real estate in top cities in India in 2012.