Hyderabad: As per the latest ANAROCK research released on Sunday, as many as 27,850 housing units were sold in Hyderabad in the first half of 2023 across all budget categories.
Interestingly, affordable homes priced under Rs 40 lakh saw the sale of just 685 units in all, comprising a meagre 2.5 percent overall share. On the other hand, MMR, Pune and NCR saw the maximum new affordable housing supply in H1 2023 among the top seven cities, collectively accounting for 87 percent of all affordable supply share.
If we consider previous trends, the overall share of sales in the affordable category has fallen drastically in Hyderabad, especially in contrast to the year 2021 when the sales share of these affordable homes stood at 24 percent.
Before the pandemic, in 2019, the sales share of affordable homes stood at 23 percent but in the year 2022, the sales fell drastically, clearly indicating the dwindling demand for affordable homes in the city.
More so, the growing demand for larger spaces post the pandemic coupled with relatively affordable property prices in Hyderabad has drifted the attention of homebuyers towards other budget segments including mid and premium segments and also the luxury segment.
While the Indian luxury homes segment is firing on all cylinders, affordable housing continues to languish due to pandemic-induced demand changes and various other factors.
Both supply and demand for affordable housing are shrinking, finds their research data.
Housing sales in Hyderabad drop by 18% in April; 4398 units sold
Chairman of ANAROCK Anuj Puri said, “The total sales share of this erstwhile poster-boy segment is down to approximately 20% in H1 2023, against 31% in the corresponding period in 2022.”
Approximately 2.29 lakh units were sold across the top 7 cities in H1 2023 while just 20 percent or approximately 46,650 units among them were affordable homes. However, back in H1 2022, approximately 1.84 lakh units were sold with over 31 percent or approximately 57,060 units falling in the affordable category.
As for affordable housing buyers, a majority are seen postponing purchase decisions due to rising real estate prices over the last year.
The lower demand also reflects in the new supply of affordable housing as developers have turned their focus on mid-range, premium and luxury projects which are in significantly higher demand.
The report further indicates that the total new supply share in the affordable category across the top seven cities has declined from 23 percent in H1 2022 to 18 percent in H1 2023.
