The real estate market in Delhi-NCR is experiencing a troubling trend: a significant decline in the availability of affordable homes. A recent report shows a staggering drop in the share of homes priced below Rs 50 lakh, plummeting from 48% to a mere 15% in just over a year. This dramatic shift has experts concerned about the ability of middle-income earners to find suitable housing in the region.
While overall housing sales in Delhi-NCR have risen by 41% in the first quarter of 2024, this growth masks a deeper issue. The report, conducted by JLL, reveals a stark decline in the availability of affordable options. This trend has been ongoing for the past two years, with the percentage of affordable homes steadily decreasing.
Industry analysts point to several factors contributing to this shift. Rising construction costs and land prices are making it less profitable for developers to build budget-friendly apartments. Additionally, the post-pandemic economic recovery might be driving demand towards larger and more expensive properties.
This trend has significant consequences for middle-income families in Delhi-NCR. With fewer affordable options available, they may be forced to look at outlying areas with longer commutes or settle for smaller living spaces that don’t meet their needs.
The long-term impact of this shift remains to be seen. Some experts believe it could lead to a housing bubble, as the increasing scarcity of affordable options drives up prices further. Others warn of a potential social crisis, as essential workers and young professionals struggle to find a foothold in the Delhi-NCR housing market.
The situation demands a multifaceted approach. Policymakers might need to explore measures to incentivize developers to build affordable housing projects. Additionally, initiatives to improve public transportation infrastructure in outlying areas could make them more attractive options for homebuyers priced out of the central city.
One thing is clear: the decline of affordable housing in Delhi-NCR is a cause for concern. As the real estate market navigates this new reality, solutions will be needed to ensure that everyone has access to a safe and secure place to call home.
